We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reasons Why You Should Retain Arch Capital (ACGL) Stock
Read MoreHide Full Article
Arch Capital Group Ltd. (ACGL - Free Report) has been gaining momentum over the past many quarters on the back of new business opportunities, rate increases, higher premium earned and strong balance sheet.
Growth Projections
The Zacks Consensus Estimate for 2021 and 2022 earnings per share is pegged at $3.14 and $4.09, indicating year-over-year increase of 130.8% and 30.2%, respectively.
Earnings Surprise History
Arch Capital has a decent earnings surprise history. It beat estimates in each of the last four quarters, with the average being 40.35%.
Zacks Rank & Price Performance
Arch Capital currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 35.3% compared with the industry’s increase of 40.3%.
Image Source: Zacks Investment Research
Style Score
The company has a favorable VGM Score of B. VGM Score helps to identify stocks with the most attractive value, best growth and the most promising momentum.
It has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company.
Business Tailwinds
Arch Capital is witnessing a positive trend in net premiums earned, driven by premium growth at both its Insurance and Reinsurance segments.
Increase in most lines of business due to new business opportunities, rate increases and growth in existing accounts will continue to boost the performance of the Insurance segment of Arch Capital.
The company’s reinsurance operations continue to gain from higher premiums across most of its business lines fueled by combination of new business and strong rate increases.
Rate increases coupled with better underwriting actions are likely to improve the loss ratios, while growth in the premium base should better the expense ratio. Over the last four quarters, Arch Capital witnessed lower claims activity as well.
Moreover, rate increase on a global basis strengthens the momentum for improving margins in P&C insurance. The insurer expects improved underwriting margins for the next several quarters.
Furthermore, higher premium earned, lower loss ratios and expense ratio continue to improve the underlying combined ratio.
Arch Capital boasts a solid balance sheet with debt plus preferred leverage remaining well within the reasonable range. Also, higher level of premiums boosts the cash flows from operation.
Banking on solid financial strength, the insurer engages in capital deployment to enhance its shareholders value. Currently, it has $737.3 million remaining under its share repurchase authorization.
The bottom line of HCI Group surpassed estimates in three of the last four quarters and missed the mark in the remaining one, the average beat being 42.91%.
Cincinnati Financial’s earnings surpassed estimates in three of the last four quarters, missing the mark on a single occasion, the average surprise being 17.63%.
Alleghany’s earnings surpassed estimates in each of the last four quarters, the average being 128.63%.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Bigstock
Reasons Why You Should Retain Arch Capital (ACGL) Stock
Arch Capital Group Ltd. (ACGL - Free Report) has been gaining momentum over the past many quarters on the back of new business opportunities, rate increases, higher premium earned and strong balance sheet.
Growth Projections
The Zacks Consensus Estimate for 2021 and 2022 earnings per share is pegged at $3.14 and $4.09, indicating year-over-year increase of 130.8% and 30.2%, respectively.
Earnings Surprise History
Arch Capital has a decent earnings surprise history. It beat estimates in each of the last four quarters, with the average being 40.35%.
Zacks Rank & Price Performance
Arch Capital currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 35.3% compared with the industry’s increase of 40.3%.
Style Score
The company has a favorable VGM Score of B. VGM Score helps to identify stocks with the most attractive value, best growth and the most promising momentum.
It has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company.
Business Tailwinds
Arch Capital is witnessing a positive trend in net premiums earned, driven by premium growth at both its Insurance and Reinsurance segments.
Increase in most lines of business due to new business opportunities, rate increases and growth in existing accounts will continue to boost the performance of the Insurance segment of Arch Capital.
The company’s reinsurance operations continue to gain from higher premiums across most of its business lines fueled by combination of new business and strong rate increases.
Rate increases coupled with better underwriting actions are likely to improve the loss ratios, while growth in the premium base should better the expense ratio. Over the last four quarters, Arch Capital witnessed lower claims activity as well.
Moreover, rate increase on a global basis strengthens the momentum for improving margins in P&C insurance. The insurer expects improved underwriting margins for the next several quarters.
Furthermore, higher premium earned, lower loss ratios and expense ratio continue to improve the underlying combined ratio.
Arch Capital boasts a solid balance sheet with debt plus preferred leverage remaining well within the reasonable range. Also, higher level of premiums boosts the cash flows from operation.
Banking on solid financial strength, the insurer engages in capital deployment to enhance its shareholders value. Currently, it has $737.3 million remaining under its share repurchase authorization.
Stocks to Consider
Some better-ranked stocks from the insurance sector are HCI Group, Inc. (HCI - Free Report) , Cincinnati Financial Corporation (CINF - Free Report) and Alleghany Corporation , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The bottom line of HCI Group surpassed estimates in three of the last four quarters and missed the mark in the remaining one, the average beat being 42.91%.
Cincinnati Financial’s earnings surpassed estimates in three of the last four quarters, missing the mark on a single occasion, the average surprise being 17.63%.
Alleghany’s earnings surpassed estimates in each of the last four quarters, the average being 128.63%.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>