Arch Capital Group (ACGL) closed the most recent trading day at $43.93, moving -1.94% from the previous trading session. This move lagged the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the property and casualty insurer had lost 4.03% over the past month, outpacing the Finance sector's loss of 7.97% and the S&P 500's loss of 10.24% in that time.
Investors will be hoping for strength from Arch Capital Group as it approaches its next earnings release. In that report, analysts expect Arch Capital Group to post earnings of $0.98 per share. This would mark year-over-year growth of 32.43%. Meanwhile, our latest consensus estimate is calling for revenue of $2.51 billion, up 24.61% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.64 per share and revenue of $9.6 billion. These totals would mark changes of +29.61% and +13.21%, respectively, from last year.
Any recent changes to analyst estimates for Arch Capital Group should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Arch Capital Group is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that Arch Capital Group has a Forward P/E ratio of 9.66 right now. This valuation marks a discount compared to its industry's average Forward P/E of 13.04.
Also, we should mention that ACGL has a PEG ratio of 0.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ACGL's industry had an average PEG ratio of 1.63 as of yesterday's close.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.
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 Report
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