In the latest trading session, Arch Capital Group (ACGL) closed at $92.51, marking a -0.47% move from the previous day. This move lagged the S&P 500's daily gain of 1.67%. Meanwhile, the Dow gained 1.07%, and the Nasdaq, a tech-heavy index, added 2.5%.
The the stock of property and casualty insurer has fallen by 1.72% in the past month, leading the Finance sector's loss of 4.45% and the S&P 500's loss of 6.57%.
The upcoming earnings release of Arch Capital Group will be of great interest to investors. The company's earnings report is expected on April 29, 2025. On that day, Arch Capital Group is projected to report earnings of $1.37 per share, which would represent a year-over-year decline of 44.08%. At the same time, our most recent consensus estimate is projecting a revenue of $4.55 billion, reflecting a 20.79% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.85 per share and a revenue of $18.96 billion, signifying shifts of -15.41% and +14.07%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Arch Capital Group. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.22% lower within the past month. At present, Arch Capital Group boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Arch Capital Group is currently being traded at a Forward P/E ratio of 11.84. This denotes a premium relative to the industry's average Forward P/E of 11.74.
Investors should also note that ACGL has a PEG ratio of 3.7 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. The Insurance - Property and Casualty industry currently had an average PEG ratio of 2.11 as of yesterday's close.
The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 33, positioning it in the top 14% 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.
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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