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Arch Capital Group (ACGL) Stock Moves -0.63%: What You Should Know

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Arch Capital Group (ACGL - Free Report) closed at $92.34 in the latest trading session, marking a -0.63% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.11%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 1.49%.

The property and casualty insurer's shares have seen a decrease of 7.75% over the last month, not keeping up with the Finance sector's loss of 4.01% and the S&P 500's gain of 0.4%.

The investment community will be closely monitoring the performance of Arch Capital Group in its forthcoming earnings report. The company is expected to report EPS of $1.96, down 21.29% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.23 billion, reflecting a 15.2% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.93 per share and a revenue of $16.15 billion, indicating changes of +5.68% and +19.75%, respectively, from the former year.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.72% lower within the past month. Arch Capital Group currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Arch Capital Group is currently being traded at a Forward P/E ratio of 10.41. This valuation marks a discount compared to its industry's average Forward P/E of 13.65.

Investors should also note that ACGL has a PEG ratio of 1.49 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Insurance - Property and Casualty industry held an average PEG ratio of 1.49.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 18, finds itself in the top 8% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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