In the latest close session, Arch Capital Group (ACGL) was up +1% at $90.73. The stock's performance was ahead of the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 0.31%.
Heading into today, shares of the property and casualty insurer had lost 1.86% over the past month, lagging the Finance sector's gain of 1.64% and the S&P 500's gain of 3.15%.
The investment community will be paying close attention to the earnings performance of Arch Capital Group in its upcoming release. The company is slated to reveal its earnings on October 27, 2025. It is anticipated that the company will report an EPS of $1.76, marking a 11.56% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.82 billion, indicating a 10.2% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.13 per share and a revenue of $18.87 billion, representing changes of -12.39% and +13.48%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Arch Capital Group. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Arch Capital Group is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Arch Capital Group is currently being traded at a Forward P/E ratio of 11.05. This represents a discount compared to its industry average Forward P/E of 11.45.
Also, we should mention that ACGL has a PEG ratio of 5.5. 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 average PEG ratio for the Insurance – Property and Casualty industry stood at 2.54 at the close of the market yesterday.
