In the latest close session, Arch Capital Group (ACGL) was up +1.66% at $89.00. The stock's performance was ahead of the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq depreciated by 0.39%.
The property and casualty insurer's stock has dropped by 3.91% in the past month, falling short of the Finance sector's gain of 4.07% and the S&P 500's gain of 5.88%.
Market participants will be closely following the financial results of Arch Capital Group in its upcoming release. The company plans to announce its earnings on July 29, 2025. On that day, Arch Capital Group is projected to report earnings of $2.31 per share, which would represent a year-over-year decline of 10.12%. Meanwhile, our latest consensus estimate is calling for revenue of $4.65 billion, up 18.03% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.86 per share and revenue of $18.75 billion, which would represent changes of -15.3% and +12.8%, respectively, from the prior 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.63% lower. Arch Capital Group is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Arch Capital Group is at present trading with a Forward P/E ratio of 11.14. This denotes a discount relative to the industry average Forward P/E of 11.83.
Investors should also note that ACGL has a PEG ratio of 6.09 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 2.6 based on yesterday's closing prices.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 88, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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