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Arch Capital Group (ACGL) Stock Declines While Market Improves: Some Information for Investors

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Arch Capital Group (ACGL - Free Report) closed at $94.75 in the latest trading session, marking a -1.12% move from the prior day. This change lagged the S&P 500's 0.01% gain on the day. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.32%.

The property and casualty insurer's stock has climbed by 3.03% in the past month, falling short of the Finance sector's gain of 3.54% and the S&P 500's gain of 5.2%.

The investment community will be closely monitoring the performance of Arch Capital Group in its forthcoming earnings report. The company is expected to report EPS of $2.34, down 8.95% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.65 billion, showing a 18.08% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.91 per share and a revenue of $18.87 billion, indicating changes of -14.76% and +13.52%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Arch Capital Group. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Right now, Arch Capital Group possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Arch Capital Group currently has a Forward P/E ratio of 12.12. This valuation marks a discount compared to its industry's average Forward P/E of 12.17.

We can additionally observe that ACGL currently boasts a PEG ratio of 6.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Insurance - Property and Casualty industry was having an average PEG ratio of 2.79.

The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 51, positioning it in the top 21% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ACGL in the coming trading sessions, be sure to utilize Zacks.com.


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