Has Arch Capital Group (ACGL) Outpaced Other Finance Stocks This Year?

·2 min read

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Arch Capital Group (ACGL) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Arch Capital Group is one of 884 companies in the Finance group. The Finance group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Arch Capital Group is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for ACGL's full-year earnings has moved 7.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, ACGL has moved about 4.7% on a year-to-date basis. Meanwhile, stocks in the Finance group have lost about 12% on average. This means that Arch Capital Group is performing better than its sector in terms of year-to-date returns.

Another Finance stock, which has outperformed the sector so far this year, is Allegiance Bancshares (ABTX). The stock has returned 0.1% year-to-date.

For Allegiance Bancshares, the consensus EPS estimate for the current year has increased 18% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Arch Capital Group belongs to the Insurance - Property and Casualty industry, which includes 39 individual stocks and currently sits at #147 in the Zacks Industry Rank. On average, stocks in this group have lost 2.8% this year, meaning that ACGL is performing better in terms of year-to-date returns.

In contrast, Allegiance Bancshares falls under the Banks - Southeast industry. Currently, this industry has 64 stocks and is ranked #40. Since the beginning of the year, the industry has moved -3.8%.

Investors with an interest in Finance stocks should continue to track Arch Capital Group and Allegiance Bancshares. These stocks will be looking to continue their solid performance.

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