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Arch Capital Group (ACGL) Rises As Market Takes a Dip: Key Facts

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Arch Capital Group (ACGL - Free Report) ended the recent trading session at $95.16, demonstrating a +1.32% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.34% for the day. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, added 0.16%.

The property and casualty insurer's shares have seen an increase of 2.18% over the last month, not keeping up with the Finance sector's gain of 3.09% and outstripping the S&P 500's gain of 1.19%.

Analysts and investors alike will be keeping a close eye on the performance of Arch Capital Group in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.34, showcasing a 3.54% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.73 billion, indicating a 3.97% increase compared to the same quarter of the previous year.

ACGL's full-year Zacks Consensus Estimates are calling for earnings of $9.13 per share and revenue of $18.75 billion. These results would represent year-over-year changes of -1.62% and 0%, respectively.

Any recent changes to analyst estimates for Arch Capital Group should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.23% lower within the past month. Arch Capital Group presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Arch Capital Group currently has a Forward P/E ratio of 9.98. This represents a discount compared to its industry average Forward P/E of 10.54.

Investors should also note that ACGL has a PEG ratio of 2.12 right now. 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 2.12 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 109, placing it within the top 45% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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