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Year-to-date, the Zacks Insurance – Property and Casualty Industry has displayed remarkable relative strength, increasing by nearly 3% in value and easily outperforming the S&P 500.
A company residing in the industry, Arch Capital Group (ACGL - Free Report) , sports the highly-coveted Zacks Rank #1 (Strong Buy) paired with an overall VGM Score of a B.
Arch Capital Group writes insurance, reinsurance, and mortgage insurance worldwide. Through its wholly-owned subsidiaries, the property and casualty (P&C) insurer provides a wide range of products and services, including primary and excess casualty coverages, professional indemnity, and umbrella liability, to name a few.
Let’s take a closer look at the company.
Share Performance
Year-to-date, ACGL shares have been notably strong, increasing by a solid 6.5% in value and crushing the S&P 500’s decline of nearly 10%.
Image Source: Zacks Investment Research
The strong price action of ACGL shares indicates that buyers have defended the stock all year long, which is undoubtedly a positive. In a market filled with red YTD returns, the sight of green is more than pleasant.
Growth Estimates
Analysts have been bullish across the board over the last 60 days, helping push the stock into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
For the company’s current fiscal year (FY22), the Zacks Consensus EPS Estimate sits at $4.64, penciling in a substantial 30% Y/Y uptick in earnings. And in FY23, ACGL’s bottom-line is projected to expand by an additional 18%.
Image Source: Zacks Investment Research
Top-line projections are also stellar; Arch Capital is forecasted to generate $9.6 billion in revenue throughout FY22, good enough for a 13% uptick year-over-year. Looking ahead, the $11.3 billion Zacks Consensus Sales Estimate for FY23 reflects an additional 18% of growth Y/Y.
Image Source: Zacks Investment Research
Valuation
ACGL’s valuation levels appear rock-solid, further bolstered by its Style Score of an A for Value.
The company’s forward earnings multiple resides at 10.4X, well below its five-year median of 13.2X and reflecting a deep 34% discount relative to its Zacks Finance Sector.
Image Source: Zacks Investment Research
Quarterly Performance
In addition, the company has repeatedly beat bottom-line expectations, exceeding the Zacks Consensus EPS Estimate in eight of its previous ten quarters.
ACGL’s top-line results have left some to be desired, but in its latest print, the company registered a 2% top-line beat.
Bottom Line
One of the best ways investors can find expected winners within the market is by utilizing the Zacks Rank – one of the most potent market tools out there.
A portfolio consisting of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 31 years with an average annual return of 24%.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Arch Capital Group (ACGL - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
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Bull of the Day: Arch Capital Group (ACGL)
Year-to-date, the Zacks Insurance – Property and Casualty Industry has displayed remarkable relative strength, increasing by nearly 3% in value and easily outperforming the S&P 500.
A company residing in the industry, Arch Capital Group (ACGL - Free Report) , sports the highly-coveted Zacks Rank #1 (Strong Buy) paired with an overall VGM Score of a B.
Arch Capital Group writes insurance, reinsurance, and mortgage insurance worldwide. Through its wholly-owned subsidiaries, the property and casualty (P&C) insurer provides a wide range of products and services, including primary and excess casualty coverages, professional indemnity, and umbrella liability, to name a few.
Let’s take a closer look at the company.
Share Performance
Year-to-date, ACGL shares have been notably strong, increasing by a solid 6.5% in value and crushing the S&P 500’s decline of nearly 10%.
Image Source: Zacks Investment Research
The strong price action of ACGL shares indicates that buyers have defended the stock all year long, which is undoubtedly a positive. In a market filled with red YTD returns, the sight of green is more than pleasant.
Growth Estimates
Analysts have been bullish across the board over the last 60 days, helping push the stock into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
For the company’s current fiscal year (FY22), the Zacks Consensus EPS Estimate sits at $4.64, penciling in a substantial 30% Y/Y uptick in earnings. And in FY23, ACGL’s bottom-line is projected to expand by an additional 18%.
Image Source: Zacks Investment Research
Top-line projections are also stellar; Arch Capital is forecasted to generate $9.6 billion in revenue throughout FY22, good enough for a 13% uptick year-over-year. Looking ahead, the $11.3 billion Zacks Consensus Sales Estimate for FY23 reflects an additional 18% of growth Y/Y.
Image Source: Zacks Investment Research
Valuation
ACGL’s valuation levels appear rock-solid, further bolstered by its Style Score of an A for Value.
The company’s forward earnings multiple resides at 10.4X, well below its five-year median of 13.2X and reflecting a deep 34% discount relative to its Zacks Finance Sector.
Image Source: Zacks Investment Research
Quarterly Performance
In addition, the company has repeatedly beat bottom-line expectations, exceeding the Zacks Consensus EPS Estimate in eight of its previous ten quarters.
ACGL’s top-line results have left some to be desired, but in its latest print, the company registered a 2% top-line beat.
Bottom Line
One of the best ways investors can find expected winners within the market is by utilizing the Zacks Rank – one of the most potent market tools out there.
A portfolio consisting of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 31 years with an average annual return of 24%.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Arch Capital Group (ACGL - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).