In the latest close session, Arch Capital Group (ACGL) was down 2.65% at $88.19. This change lagged the S&P 500's daily loss of 0.4%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq increased by 0.18%.
The stock of property and casualty insurer has fallen by 0.6% in the past month, lagging the Finance sector's gain of 4.41% and the S&P 500's gain of 4.97%.
Analysts and investors alike will be keeping a close eye on the performance of Arch Capital Group in its upcoming earnings disclosure. The company's earnings report is set to go public on July 29, 2025. The company's earnings per share (EPS) are projected to be $2.35, reflecting a 8.56% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.65 billion, up 18.05% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.91 per share and a revenue of $18.92 billion, indicating changes of -14.76% and +13.83%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Arch Capital Group. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Arch Capital Group is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Arch Capital Group currently has a Forward P/E ratio of 11.46. This represents a discount compared to its industry average Forward P/E of 11.81.
We can additionally observe that ACGL currently boasts a PEG ratio of 6.26. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 2.65 based on yesterday's closing prices.
The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 139, placing it within the bottom 44% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Arch Capital Group Ltd. (ACGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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