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Here's Why Arch Capital Group (ACGL) Fell More Than Broader Market
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In the latest close session, Arch Capital Group (ACGL - Free Report) was down 1.43% at $94.81. This change lagged the S&P 500's daily loss of 0.08%. On the other hand, the Dow registered a loss of 0.61%, and the technology-centric Nasdaq increased by 0.08%.
Shares of the property and casualty insurer witnessed a loss of 1.7% over the previous month, beating the performance of the Finance sector with its loss of 5.6%, and the S&P 500's loss of 2.16%.
The investment community will be paying close attention to the earnings performance of Arch Capital Group in its upcoming release. The company's upcoming EPS is projected at $2.48, signifying a 61.04% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.7 billion, reflecting a 2.98% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.42 per share and revenue of $18.79 billion, which would represent changes of -4.27% and 0%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Arch Capital Group. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.77% lower within the past month. As of now, Arch Capital Group holds a Zacks Rank of #3 (Hold).
Looking at valuation, Arch Capital Group is presently trading at a Forward P/E ratio of 10.21. This signifies a discount in comparison to the average Forward P/E of 10.24 for its industry.
Meanwhile, ACGL's PEG ratio is currently 3.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Insurance - Property and Casualty was holding an average PEG ratio of 2.02 at yesterday's closing price.
The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 34, positioning it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why Arch Capital Group (ACGL) Fell More Than Broader Market
In the latest close session, Arch Capital Group (ACGL - Free Report) was down 1.43% at $94.81. This change lagged the S&P 500's daily loss of 0.08%. On the other hand, the Dow registered a loss of 0.61%, and the technology-centric Nasdaq increased by 0.08%.
Shares of the property and casualty insurer witnessed a loss of 1.7% over the previous month, beating the performance of the Finance sector with its loss of 5.6%, and the S&P 500's loss of 2.16%.
The investment community will be paying close attention to the earnings performance of Arch Capital Group in its upcoming release. The company's upcoming EPS is projected at $2.48, signifying a 61.04% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.7 billion, reflecting a 2.98% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.42 per share and revenue of $18.79 billion, which would represent changes of -4.27% and 0%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Arch Capital Group. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.77% lower within the past month. As of now, Arch Capital Group holds a Zacks Rank of #3 (Hold).
Looking at valuation, Arch Capital Group is presently trading at a Forward P/E ratio of 10.21. This signifies a discount in comparison to the average Forward P/E of 10.24 for its industry.
Meanwhile, ACGL's PEG ratio is currently 3.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Insurance - Property and Casualty was holding an average PEG ratio of 2.02 at yesterday's closing price.
The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 34, positioning it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.