Back to top

Image: Bigstock

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

Read MoreHide Full Article

For those looking to find strong Finance stocks, it is prudent to search for companies in the group 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? 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 one of 894 companies in the Finance group. The Finance group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Arch Capital Group is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ACGL's full-year earnings has moved 4.3% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, ACGL has gained about 6% so far this year. Meanwhile, stocks in the Finance group have lost about 0.4% on average. This shows that Arch Capital Group is outperforming its peers so far this year.

Another Finance stock, which has outperformed the sector so far this year, is Ameriprise Financial Services (AMP - Free Report) . The stock has returned 1.9% year-to-date.

The consensus estimate for Ameriprise Financial Services' current year EPS has increased 6.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Arch Capital Group belongs to the Insurance - Property and Casualty industry, a group that includes 40 individual companies and currently sits at #57 in the Zacks Industry Rank. On average, this group has gained an average of 15.2% so far this year, meaning that ACGL is slightly underperforming its industry in terms of year-to-date returns.

Ameriprise Financial Services, however, belongs to the Financial - Investment Management industry. Currently, this 45-stock industry is ranked #187. The industry has moved -14% so far this year.

Investors with an interest in Finance stocks should continue to track Arch Capital Group and Ameriprise Financial Services. 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:


Ameriprise Financial, Inc. (AMP) - free report >>

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

Published in