Back to top

Image: Bigstock

Is Arch Capital Group (ACGL) Stock Outpacing Its Finance Peers This Year?

Read MoreHide Full Article

The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Arch Capital Group (ACGL - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Arch Capital Group is a member of the Finance sector. This group includes 901 individual stocks and currently holds a Zacks Sector Rank of #1. 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 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).

Over the past three months, the Zacks Consensus Estimate for ACGL's full-year earnings has moved 5.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, ACGL has returned 4.2% so far this year. Meanwhile, stocks in the Finance group have lost about 0.3% on average. This means that Arch Capital Group is outperforming the sector as a whole this year.

One other Finance stock that has outperformed the sector so far this year is Ares Capital (ARCC - Free Report) . The stock is up 4.3% year-to-date.

In Ares Capital's case, the consensus EPS estimate for the current year increased 0.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Arch Capital Group is a member of the Insurance - Property and Casualty industry, which includes 41 individual companies and currently sits at #83 in the Zacks Industry Rank. Stocks in this group have gained about 3.8% so far this year, so ACGL is performing better this group in terms of year-to-date returns.

Ares Capital, however, belongs to the Financial - SBIC & Commercial Industry industry. Currently, this 36-stock industry is ranked #152. The industry has moved -0.1% so far this year.

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


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Ares Capital Corporation (ARCC) - free report >>

Arch Capital Group Ltd. (ACGL) - free report >>

Published in