Arch Capital Group (ACGL) closed at $93.10 in the latest trading session, marking a -1.06% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.58% for the day.
The property and casualty insurer's shares have seen an increase of 5.01% over the last month, surpassing the Finance sector's gain of 1.07% and the S&P 500's gain of 3.68%.
The investment community will be paying close attention to the earnings performance of Arch Capital Group in its upcoming release. The company is slated to reveal its earnings on October 27, 2025. The company is expected to report EPS of $1.8, down 9.55% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.82 billion, reflecting a 10.2% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.15 per share and a revenue of $18.87 billion, signifying shifts of -12.18% and +13.48%, respectively, from the last year.
Any recent changes to analyst estimates for Arch Capital Group should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.31% higher within the past month. Arch Capital Group currently has 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 11.55. For comparison, its industry has an average Forward P/E of 12, which means Arch Capital Group is trading at a discount to the group.
We can also see that ACGL currently has a PEG ratio of 5.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ACGL's industry had an average PEG ratio of 2.61 as of yesterday's close.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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