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Arch Capital Group (ACGL) Stock Sinks As Market Gains: What You Should Know

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Arch Capital Group (ACGL - Free Report) ended the recent trading session at $89.57, demonstrating a -2.88% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.4% for the day. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.66%.

Shares of the property and casualty insurer witnessed a gain of 5.55% over the previous month, beating the performance of the Finance sector with its loss of 1.05%, and the S&P 500's gain of 1.02%.

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 October 27, 2025. The company is forecasted to report an EPS of $2.1, showcasing a 5.53% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $4.8 billion, up 9.72% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.56 per share and a revenue of $18.87 billion, signifying shifts of -7.76% and +13.51%, respectively, from the last year.

Any recent changes to analyst estimates for Arch Capital Group should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.62% increase. 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 10.77. This expresses a discount compared to the average Forward P/E of 11.7 of its industry.

It is also worth noting that ACGL currently has a PEG ratio of 5.36. 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. ACGL's industry had an average PEG ratio of 2.47 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 46, placing it within the top 19% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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