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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) closed the most recent trading day at $87.92, moving -2.54% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.95%.

The property and casualty insurer's stock has climbed by 0.49% in the past month, falling short of the Finance sector's gain of 2.14% and the S&P 500's gain of 3.85%.

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 July 29, 2025. In that report, analysts expect Arch Capital Group to post earnings of $2.34 per share. This would mark a year-over-year decline of 8.95%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.65 billion, indicating a 18.05% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.91 per share and revenue of $18.86 billion. These totals would mark changes of -14.76% and +13.46%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Arch Capital Group. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. Arch Capital Group presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Arch Capital Group is currently exchanging hands at a Forward P/E ratio of 11.41. This denotes a discount relative to the industry average Forward P/E of 11.89.

We can also see that ACGL currently has a PEG ratio of 6.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Insurance - Property and Casualty industry held an average PEG ratio of 2.67.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 34% echelons of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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