Arch Capital Group (ACGL) ended the recent trading session at $93.86, demonstrating a -2.15% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.19%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq lost 0.03%.
Heading into today, shares of the property and casualty insurer had gained 3.82% over the past month, outpacing the Finance sector's gain of 2.08% and the S&P 500's gain of 0.54%.
The investment community will be closely monitoring the performance of Arch Capital Group in its forthcoming earnings report. The company is expected to report EPS of $2.34, up 3.54% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.73 billion, indicating a 3.97% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.13 per share and revenue of $18.75 billion, indicating changes of -1.62% and 0%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Arch Capital Group. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% lower. Arch Capital Group currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Arch Capital Group is currently being traded at a Forward P/E ratio of 10.19. This expresses a discount compared to the average Forward P/E of 10.6 of its industry.
We can also see that ACGL currently has a PEG ratio of 2.17. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Insurance - Property and Casualty industry currently had an average PEG ratio of 1.55 as of yesterday's close.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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