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Arch Capital Group (ACGL) Stock Sinks As Market Gains: Here's Why

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Arch Capital Group (ACGL - Free Report) closed at $88.38 in the latest trading session, marking a -3.41% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.48%. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.94%.

Prior to today's trading, shares of the property and casualty insurer had lost 4.51% lagged the Finance sector's gain of 3.5% and the S&P 500's gain of 5.13%.

The investment community will be paying close attention to the earnings performance of Arch Capital Group in its upcoming release. The company is slated to reveal its earnings on July 29, 2025. In that report, analysts expect Arch Capital Group to post earnings of $2.34 per share. This would mark a year-over-year decline of 8.95%. Alongside, our most recent consensus estimate is anticipating revenue of $4.65 billion, indicating a 18.05% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.91 per share and a revenue of $18.86 billion, indicating changes of -14.76% and +13.46%, respectively, from the former year.

Any recent changes to analyst estimates for Arch Capital Group should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Arch Capital Group is presently being traded at a Forward P/E ratio of 11.57. Its industry sports an average Forward P/E of 12, so one might conclude that Arch Capital Group is trading at a discount comparatively.

Also, we should mention that ACGL has a PEG ratio of 6.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Insurance - Property and Casualty industry currently had an average PEG ratio of 2.73 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 49, positioning it in the top 20% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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