In the latest close session, Arch Capital Group (ACGL) was down 2.65% at $90.77. The stock fell short of the S&P 500, which registered a loss of 0.19% for the day. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Heading into today, shares of the property and casualty insurer had lost 2.59% over the past month, lagging the Finance sector's gain of 1.58% and the S&P 500's gain of 2.26%.
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 February 9, 2026. The company's upcoming EPS is projected at $2.42, signifying a 7.08% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.7 billion, reflecting a 3.36% rise from the equivalent quarter last year.
ACGL's full-year Zacks Consensus Estimates are calling for earnings of $9.2 per share and revenue of $18.74 billion. These results would represent year-over-year changes of -0.86% and 0%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Arch Capital Group. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 shifted 0.3% upward. Arch Capital Group is currently a Zacks Rank #3 (Hold).
In terms of valuation, Arch Capital Group is presently being traded at a Forward P/E ratio of 9.86. This indicates a discount in contrast to its industry's Forward P/E of 10.45.
We can additionally observe that ACGL currently boasts a PEG ratio of 2.1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Insurance - Property and Casualty industry currently had an average PEG ratio of 2.1 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 166, putting it in the bottom 33% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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