Shrugging off initial setbacks, the broader U.S. equity markets witnessed a steady uptrend over the past couple of trading days and hit record-high territory in a month historically known as the worst for the benchmark indices. The stock market rally was driven by broad-based expectations of an interest rate cut by the Federal Reserve. However, despite a half-percentage-point rate cut to a range of 4.75% to 5.00%, akin to the expectations — the first rate cut in four years — the markets failed to hold on to ...

Have you been paying attention to shares of Arch Capital Group (ACGL) ? Shares have been on the move with the stock up 10.9% over the past month. The stock hit a new 52-week high of $114.69 in the previous session. Arch Capital Group has gained 53.4% since the start of the year compared to the 16.6% move for the Zacks Finance sector and the 27.8% return for the Zacks Insurance - Property and Casualty industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as i ...

Arch Capital Group (ACGL) ended the recent trading session at $113.96, demonstrating a -0.23% swing from the preceding day's closing price. This change lagged the S&P 500's 0.03% gain on the day. On the other hand, the Dow registered a loss of 0.04%, and the technology-centric Nasdaq increased by 0.2%.The property and casualty insurer's shares have seen an increase of 10.89% over the last month, surpassing the Finance sector's gain of 2.72% and the S&P 500's gain of 1.54%.The investment community will be pa ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium also includes the Zacks Style Scores.What are the Zacks Style Scores?Developed ...

Arch Capital Group (ACGL) closed the most recent trading day at $114.22, moving +1.96% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.13%. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.52%.Heading into today, shares of the property and casualty insurer had gained 9.23% over the past month, outpacing the Finance sector's gain of 4.44% and the S&P 500's gain of 3.67% in that time.The investment com ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Core Viewpoint - Arch Capital Group Ltd. (ACGL) has shown strong performance in the market, with shares gaining 48.5% year to date, outperforming the industry, finance sector, and S&P 500 index, indicating a bullish trend [1][2]. Financial Performance - ACGL's shares closed at $110.26, near its 52-week high of $114.62, and are trading well above the 50-day moving average [1]. - The Zacks Consensus Estimate for 2024 earnings is $9.01 per share, reflecting a 6.6% increase on revenues of $15.6 billion, which is 15.3% higher than previous estimates [3]. - For 2025, the earnings per share estimate is $9.23, indicating a 2.5% increase on revenues of $17 billion, which is 9.2% higher [3]. - The long-term earnings growth rate is projected at 6.1%, with a three-year CAGR of 4.2% expected for 2026 [3]. Analyst Sentiment - Six out of eight analysts have raised their earnings estimates for 2024, and five have done so for 2025, reflecting positive analyst sentiment [4]. - The consensus estimates for 2024 and 2025 earnings have increased by 5% and 1.5%, respectively, in the past 60 days [4]. Return on Capital - ACGL's return on equity over the trailing 12 months was 21.4%, significantly higher than the industry average of 8% [5]. - The return on invested capital (ROIC) was 16.5%, also above the industry average of 6.1%, indicating efficient use of funds [5]. Valuation - ACGL is currently trading at a price-to-book (P/B) multiple of 2.09, which is higher than the industry average of 1.59, suggesting a premium valuation [6]. - Despite its expensive valuation, the company's market-leading position, growth prospects, and better return on capital justify this premium [6]. Business Strategy - Arch Capital benefits from a diverse product portfolio and international expansion, which enhances earnings stability and risk-adjusted returns [7]. - The company is strategically diversifying its Mortgage Insurance business through acquisitions, complementing its specialty insurance and reinsurance operations [7]. Financial Stability - ACGL maintains sufficient liquidity and low leverage, strengthening its balance sheet and shielding it from market volatility [8]. - The company's free cash flow conversion has remained above 85% over recent quarters, reflecting solid earnings [8].

The broader U.S. equity markets had a shaky start to the September trading month, with leading benchmark indices declining sharply as premier blue-chip technology stocks stumbled. This is reminiscent of the trend in the preceding month that witnessed a tumultuous start followed by healthy growth in late August that more than reversed the decline.While the 12-month inflation rate of 2.9% (the lowest since March 2021) in mid-August gave an uncertain market some direction and evoked strong signals from Federal ...

The Zacks Property and Casualty Insurance industry has performed well so far this year, banking on better pricing, increased exposure, prudent underwriting, streamlined operations, global presence and a solid capital position. The industry has gained 32.1% year to date, outperforming the Finance sector’s rise of 15.1% and the Zacks S&P 500 composite’s increase of 18.4%. The group's Zacks Industry Rank places it in the top 10% of more than 250 Zacks industries and earnings estimates for the current year have ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Arch Capital Group (ACGL) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Arch Capital currently has an av ...