Arch Capital Group (ACGL) ended the recent trading session at $89.78, demonstrating a -2.78% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.63%.
Heading into today, shares of the property and casualty insurer had lost 2.41% over the past month, lagging the Finance sector's gain of 3.04% and the S&P 500's gain of 6.29% in that time.
The investment community will be paying close attention to the earnings performance of Arch Capital Group in its upcoming release. The company is predicted to post an EPS of $2.34, indicating an 8.95% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.65 billion, indicating a 18.05% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.91 per share and a revenue of $18.86 billion, indicating changes of -14.76% and +13.46%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arch Capital Group. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, there's been a 0.13% rise in the Zacks Consensus EPS estimate. 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 11.68. This valuation marks a discount compared to its industry's average Forward P/E of 11.93.
Also, we should mention that ACGL has a PEG ratio of 6.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Insurance - Property and Casualty industry had an average PEG ratio of 2.71.
The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 65, positioning it in the top 27% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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