Arch Capital Group (ACGL) closed at $89.23 in the latest trading session, marking a -1.91% move from the prior day. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.31%.
The stock of property and casualty insurer has fallen by 3.86% in the past month, lagging the Finance sector's gain of 3.26% and the S&P 500's gain of 5.05%.
Investors will be eagerly watching for the performance of Arch Capital Group in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.34, showcasing a 8.95% downward movement from the corresponding quarter of the prior 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.91 per share and a revenue of $18.86 billion, representing changes of -14.76% and +13.46%, respectively, from the prior year.
Investors should also take note of any recent adjustments 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Arch Capital Group is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Arch Capital Group is currently being traded at a Forward P/E ratio of 11.51. This indicates a discount in contrast to its industry's Forward P/E of 11.93.
It's also important to note that ACGL currently trades at a PEG ratio of 6.29. 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 average PEG ratio for the Insurance - Property and Casualty industry stood at 2.72 at the close of the market yesterday.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 42, putting it in the top 18% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Arch Capital Group Ltd. (ACGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
