Arch Capital Group (ACGL) closed the latest trading day at $90.83, indicating a +0.73% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow experienced a rise of 0.86%, and the technology-dominated Nasdaq saw a decrease of 0.38%.
Shares of the property and casualty insurer witnessed a loss of 3.48% over the previous month, beating the performance of the Finance sector with its loss of 5.04% and underperforming the S&P 500's loss of 2.2%.
The investment community will be closely monitoring the performance of Arch Capital Group in its forthcoming earnings report. The company is scheduled to release its earnings on February 10, 2025. The company's earnings per share (EPS) are projected to be $1.85, reflecting a 25.7% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.22 billion, showing a 14.86% escalation compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for Arch Capital Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 0.16% higher. Arch Capital Group presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Arch Capital Group is presently trading at a Forward P/E ratio of 9.87. This expresses a discount compared to the average Forward P/E of 11.21 of its industry.
We can also see that ACGL currently has a PEG ratio of 1.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Insurance - Property and Casualty industry stood at 1.43 at the close of the market yesterday.
The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 21, positioning it in the top 9% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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