In the latest close session, Arch Capital Group (ACGL) was up +1.04% at $91.11. The stock exceeded the S&P 500, which registered a gain of 0.96% for the day. Meanwhile, the Dow gained 0.89%, and the Nasdaq, a tech-heavy index, added 0.94%.
The property and casualty insurer's stock has dropped by 2.06% in the past month, falling short of the Finance sector's loss of 1.18% and the S&P 500's gain of 0.5%.
Analysts and investors alike will be keeping a close eye on the performance of Arch Capital Group in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.34, indicating a 8.95% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.65 billion, indicating a 18.05% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.91 per share and revenue of $18.86 billion, which would represent changes of -14.76% and +13.46%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. 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 11.41. This denotes a discount relative to the industry average Forward P/E of 11.66.
One should further note that ACGL currently holds a PEG ratio of 6.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Insurance - Property and Casualty was holding an average PEG ratio of 2.73 at yesterday's closing price.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% 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.
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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