Is Arch Capital Group (ACGL) Stock Outpacing Its Finance Peers This Year?
For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Arch Capital Group (ACGL) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.
Arch Capital Group is a member of our Finance group, which includes 848 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Arch Capital Group is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ACGL's full-year earnings has moved 10.4% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that ACGL has returned about 30.7% since the start of the calendar year. In comparison, Finance companies have returned an average of 3.7%. This shows that Arch Capital Group is outperforming its peers so far this year.
Barings BDC (BBDC) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 10.6%.
In Barings BDC's case, the consensus EPS estimate for the current year increased 5.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Arch Capital Group belongs to the Insurance - Property and Casualty industry, which includes 38 individual stocks and currently sits at #61 in the Zacks Industry Rank. On average, this group has gained an average of 8% so far this year, meaning that ACGL is performing better in terms of year-to-date returns.
Barings BDC, however, belongs to the Financial - SBIC & Commercial Industry industry. Currently, this 34-stock industry is ranked #50. The industry has moved +16.7% so far this year.
Going forward, investors interested in Finance stocks should continue to pay close attention to Arch Capital Group and Barings BDC as they could maintain their solid performance.
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Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
BARINGS BDC, INC. (BBDC) : Free Stock Analysis Report
