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Arch Capital Group (ACGL) Stock Moves -0.63%: What You Should Know

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In the latest trading session, Arch Capital Group (ACGL - Free Report) closed at $45.54, marking a -0.63% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.51%. At the same time, the Dow lost 1.71%, and the tech-heavy Nasdaq lost 0.02%.

Prior to today's trading, shares of the property and casualty insurer had gained 0.24% over the past month. This has outpaced the Finance sector's loss of 9% and the S&P 500's loss of 9.52% in that time.

Investors will be hoping for strength from Arch Capital Group as it approaches its next earnings release. On that day, Arch Capital Group is projected to report earnings of $0.98 per share, which would represent year-over-year growth of 32.43%. Meanwhile, our latest consensus estimate is calling for revenue of $2.51 billion, up 24.61% from the prior-year quarter.

ACGL's full-year Zacks Consensus Estimates are calling for earnings of $4.64 per share and revenue of $9.6 billion. These results would represent year-over-year changes of +29.61% and +13.21%, respectively.

Investors might also notice recent changes to analyst estimates for Arch Capital Group. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Arch Capital Group is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Arch Capital Group has a Forward P/E ratio of 9.88 right now. Its industry sports an average Forward P/E of 14.84, so we one might conclude that Arch Capital Group is trading at a discount comparatively.

It is also worth noting that ACGL currently has a PEG ratio of 0.99. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Insurance - Property and Casualty industry currently had an average PEG ratio of 1.58 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 140, putting it in the bottom 45% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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