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Arch Capital Group (ACGL) Declines More Than Market: Some Information for Investors

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Arch Capital Group (ACGL - Free Report) closed the most recent trading day at $88.19, moving -2.65% from the previous trading session. This change lagged the S&P 500's daily loss of 0.4%. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq added 0.18%.

Heading into today, shares of the property and casualty insurer had lost 0.6% over the past month, lagging the Finance sector's gain of 4.41% and the S&P 500's gain of 4.97%.

The upcoming earnings release of Arch Capital Group will be of great interest to investors. The company's earnings report is expected on July 29, 2025. The company is predicted to post an EPS of $2.35, indicating a 8.56% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.65 billion, indicating a 18.05% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.91 per share and a revenue of $18.92 billion, indicating changes of -14.76% and +13.83%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Arch Capital Group. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% upward. At present, Arch Capital Group boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Arch Capital Group is presently trading at a Forward P/E ratio of 11.46. This signifies a discount in comparison to the average Forward P/E of 11.81 for its industry.

We can additionally observe that ACGL currently boasts a PEG ratio of 6.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Insurance - Property and Casualty was holding an average PEG ratio of 2.65 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 139, positioning it in the bottom 44% 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.

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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