Arch Capital Group (ACGL) closed the most recent trading day at $95.72, moving +1.65% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.13%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.72%.
Shares of the property and casualty insurer witnessed a loss of 1.82% over the previous month, trailing the performance of the Finance sector with its loss of 0.7%, and the S&P 500's gain of 0.78%.
The upcoming earnings release of Arch Capital Group will be of great interest to investors. The company's earnings report is expected on February 9, 2026. The company is predicted to post an EPS of $2.48, indicating a 9.73% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $4.66 billion, indicating a 2.56% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.36 per share and a revenue of $18.7 billion, signifying shifts of +0.86% and 0%, respectively, from the last year.
Any recent changes to analyst estimates for Arch Capital Group should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.75% rise in the Zacks Consensus EPS estimate. Arch Capital Group presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Arch Capital Group is holding a Forward P/E ratio of 9.93. For comparison, its industry has an average Forward P/E of 10.06, which means Arch Capital Group is trading at a discount to the group.
One should further note that ACGL currently holds a PEG ratio of 1.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Insurance - Property and Casualty industry was having an average PEG ratio of 1.66.
The Insurance - Property and Casualty industry is part of the Finance sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 39% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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