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Reasons Why Investors Should Retain Arch Capital (ACGL) Stock
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Arch Capital Group Ltd. (ACGL - Free Report) has been gaining momentum on the back of new business opportunities, rate increases, solid growth within professional liability and travel business units and a solid capital position.
Growth Projections
The Zacks Consensus Estimate for ACGL’s 2023 earnings is pegged at $6.70 per share, suggesting a year-over-year increase of 37.5% on 30.6% higher revenues of $13.25 billion. The consensus estimate for 2024 earnings is pegged at $7.43 per share, indicating a year-over-year increase of 10.9% on 14.9% higher revenues of $15.23 billion.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2023 and 2024 earnings has moved 1.8% and 2.5% north, respectively, in the past 60 days, reflecting analysts’ optimism.
Earnings Surprise History
Arch Capital surpassed earnings estimates in each of the last four quarters, the average being 26.83%.
Zacks Rank & Price Performance
ACGL currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 62.5%, outperforming the industry’s increase of 19.7%.
Image Source: Zacks Investment Research
Style Score
Arch Capital has a VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
ACGL’s premium should continue to gain from new business opportunities, rate increases, growth in existing accounts and higher Australian single-premium mortgage insurance. With operations spread across geographies, a compelling product portfolio provides meaningful diversification and earnings stability to the insurer.
Arch Capital’s impressive inorganic growth encompasses international expansion, operation enhancements and business diversification at attractive risk-adjusted returns. The diversification of its Mortgage Insurance business via strategic acquisitions complements the strength of the specialty insurance and reinsurance businesses.
This leading specialty P&C and mortgage insurer has been witnessing substantial improvement in net investment income over the last few years. Going forward with new money rates in fixed income portfolio in the range of 4.5% to 5% and a growing base of invested assets, the company expects to deliver an increasing level of investment income to help boost the bottom line.
Arch Capital’s solid balance sheet, with high liquidity and low leverage, shields it from market volatility and supports growth initiatives.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are Kinsale Capital Group, Inc. (KNSL - Free Report) , Axis Capital Holdings Limited (AXS - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) . While Kinsale Capital sports a Zacks Rank #1 (Strong Buy), Cincinnati Financial and Axis Capital carry Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinsale Capital beat estimates in each of the last four quarters, the average being 14.88%. In the past year, KNSL has rallied 51.6%.
The Zacks Consensus Estimate for 2023 and 2024 earnings has moved 0.2% and 0.07% north, respectively, in the past seven days, reflecting analysts’ optimism.
Axis Capital has a solid track record of beating earnings estimates in three of the last four quarters while missing in one, the average being 9.75%. In the past year, AXS has gained 4.4%.
The Zacks Consensus Estimate for AXS’ 2023 and 2024 earnings per share is pegged at $8.41 and $9.31, indicating a year-over-year increase of 44.7% and 10.7%, respectively.
Cincinnati Financial has a solid track record of beating earnings estimates in three of the last four quarters while missing in one, the average being 25.25%. In the past year, CINF has gained 3.3%.
The Zacks Consensus Estimate for CINF’s 2023 and 2024 earnings per share is pegged at $5 and $5.88, indicating a year-over-year increase of 17.9% and 17.6%, respectively.
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Reasons Why Investors Should Retain Arch Capital (ACGL) Stock
Arch Capital Group Ltd. (ACGL - Free Report) has been gaining momentum on the back of new business opportunities, rate increases, solid growth within professional liability and travel business units and a solid capital position.
Growth Projections
The Zacks Consensus Estimate for ACGL’s 2023 earnings is pegged at $6.70 per share, suggesting a year-over-year increase of 37.5% on 30.6% higher revenues of $13.25 billion. The consensus estimate for 2024 earnings is pegged at $7.43 per share, indicating a year-over-year increase of 10.9% on 14.9% higher revenues of $15.23 billion.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2023 and 2024 earnings has moved 1.8% and 2.5% north, respectively, in the past 60 days, reflecting analysts’ optimism.
Earnings Surprise History
Arch Capital surpassed earnings estimates in each of the last four quarters, the average being 26.83%.
Zacks Rank & Price Performance
ACGL currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 62.5%, outperforming the industry’s increase of 19.7%.
Image Source: Zacks Investment Research
Style Score
Arch Capital has a VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
ACGL’s premium should continue to gain from new business opportunities, rate increases, growth in existing accounts and higher Australian single-premium mortgage insurance. With operations spread across geographies, a compelling product portfolio provides meaningful diversification and earnings stability to the insurer.
Arch Capital’s impressive inorganic growth encompasses international expansion, operation enhancements and business diversification at attractive risk-adjusted returns. The diversification of its Mortgage Insurance business via strategic acquisitions complements the strength of the specialty insurance and reinsurance businesses.
This leading specialty P&C and mortgage insurer has been witnessing substantial improvement in net investment income over the last few years. Going forward with new money rates in fixed income portfolio in the range of 4.5% to 5% and a growing base of invested assets, the company expects to deliver an increasing level of investment income to help boost the bottom line.
Arch Capital’s solid balance sheet, with high liquidity and low leverage, shields it from market volatility and supports growth initiatives.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are Kinsale Capital Group, Inc. (KNSL - Free Report) , Axis Capital Holdings Limited (AXS - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) . While Kinsale Capital sports a Zacks Rank #1 (Strong Buy), Cincinnati Financial and Axis Capital carry Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinsale Capital beat estimates in each of the last four quarters, the average being 14.88%. In the past year, KNSL has rallied 51.6%.
The Zacks Consensus Estimate for 2023 and 2024 earnings has moved 0.2% and 0.07% north, respectively, in the past seven days, reflecting analysts’ optimism.
Axis Capital has a solid track record of beating earnings estimates in three of the last four quarters while missing in one, the average being 9.75%. In the past year, AXS has gained 4.4%.
The Zacks Consensus Estimate for AXS’ 2023 and 2024 earnings per share is pegged at $8.41 and $9.31, indicating a year-over-year increase of 44.7% and 10.7%, respectively.
Cincinnati Financial has a solid track record of beating earnings estimates in three of the last four quarters while missing in one, the average being 25.25%. In the past year, CINF has gained 3.3%.
The Zacks Consensus Estimate for CINF’s 2023 and 2024 earnings per share is pegged at $5 and $5.88, indicating a year-over-year increase of 17.9% and 17.6%, respectively.