Group 1: Zacks Premium Overview - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The service includes Zacks Style Scores, which help investors identify stocks with the highest potential to outperform the market [2] Group 2: Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, assigning ratings from A to F, with A indicating the highest potential for outperformance [2][3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [2] - The Growth Score assesses a company's financial health and future outlook based on earnings and sales projections [3] - The Momentum Score evaluates stocks based on price trends and earnings estimate changes to identify favorable investment opportunities [3] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth, and momentum characteristics [4] Group 3: Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988 [5] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [6] Group 4: Company Spotlight - Arch Capital Group (ACGL) - Arch Capital Group Ltd., established in 1995 and headquartered in Bermuda, provides a range of insurance and reinsurance products globally [7] - ACGL currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, with a Value Style Score of B due to a forward P/E ratio of 12 [7] - For fiscal 2024, ACGL's earnings estimate has been revised upwards by seven analysts, increasing the Zacks Consensus Estimate by $0.55 to $8.55 per share, with an average earnings surprise of 28.4% [8]

It has been about a month since the last earnings report for Arch Capital Group (ACGL) . Shares have added about 9.3% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Arch Capital due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Arch Capital Q1 Earnings Beat on Soli ...

Group 1 - Arch Capital Group Ltd. (ACGL) is experiencing significant activity in the options market, particularly with the Jun 21, 2024 $45.00 Put showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Arch Capital holds a Zacks Rank 3 (Hold) in the Insurance - Property and Casualty industry, which is in the top 14% of the Zacks Industry Rank, with recent earnings estimates for the current quarter increasing from $2.11 to $2.21 per share [3] Group 2 - The high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on options with such volatility, aiming to benefit from time decay [4]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various resources like daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, offering an alphabetic rating from A to F, where A indicates the highest potential for market outperformance [2] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Sales [2] - The Growth Score assesses a company's financial health and future outlook through projected earnings and sales [3] - The Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points for investments [3] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth, and momentum [4] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [6] - Stocks with lower ranks, even with good Style Scores, may still face downward price pressure due to negative earnings forecasts [6] Company Spotlight: Arch Capital Group (ACGL) - Arch Capital Group, established in 1995, provides a range of insurance and reinsurance products globally, focusing on specialty lines [8] - Currently rated 3 (Hold) by Zacks, ACGL has a VGM Score of A and a Growth Style Score of B, with a projected year-over-year earnings growth of 1.2% for the current fiscal year [8] - Recent upward revisions by seven analysts have increased the Zacks Consensus Estimate for ACGL to $8.55 per share, with an average earnings surprise of 28.4% [9]

Industry Performance - The Zacks Property and Casualty Insurance industry has risen 13% year to date, outperforming the Zacks S&P 500 composite's rise of 10.8% and the Finance sector's increase of 3.7% [1] - Improved performance in personal auto insurance, better investment results, and lower claims are expected to fuel insurers' performance this year according to Fitch Ratings [1] Catastrophe Impact - Total economic losses from catastrophes exceeded $45 billion in Q1 2024, with insured losses at $17 million, primarily due to severe weather events in the U.S., Europe, and Japan [2] - Catastrophe losses are estimated to contribute 680 basis points to the expected combined ratio of 100.7 in 2024 [2] - Global commercial insurance prices have risen for 26 consecutive quarters, increasing by 1% in Q1 2024, although the rate of increase has slowed [2] Interest Rate Environment - The insurance industry benefits from a rising rate environment, with the Fed making four rate hikes in 2023, totaling 11 since March 2022 [3] - Long-tail insurers are expected to benefit more from this environment, although concerns about potential rate cuts exist [3] Company Overview - Allstate Corporation has a market capitalization of $43.3 billion, making it the third-largest property-casualty insurer and the largest publicly-held personal lines carrier in the U.S. [4] - Arch Capital Group Ltd. has a market capitalization of $38.3 billion and offers insurance, reinsurance, and mortgage insurance globally [4] Price Performance - Arch Capital Group Ltd. (ACGL) has gained 37.2% year to date, while Allstate Corporation (ALL) has risen by 17.2% [5] Return on Equity - ACGL has a return on equity (ROE) of 21.8%, surpassing ALL's ROE of 14.4% and the industry average of 7.8% [6] Return on Invested Capital - ACGL's return on invested capital (ROIC) stands at 16.6%, significantly higher than the industry average of 5.9% and ALL's ROIC of 4.5% [7] Dividend Yield - Allstate's dividend yield is 2.5%, exceeding the industry average of 0.3%, while Arch Capital does not pay dividends [8] Debt-to-Equity Ratio - ALL's debt-to-equity ratio is 43, higher than the industry average of 21.7 and ACGL's ratio of 16.3 [8] Growth Projection - The Zacks Consensus Estimate for ACGL's 2024 earnings indicates a 1.2% increase, while ALL's estimate suggests a significant year-over-year increase of 1,494.7% [9] - For 2025, ACGL's earnings are expected to grow by 5.2%, while ALL's growth projection is 14.4% [9] - The expected long-term earnings growth rate for ACGL is 5.1%, compared to ALL's 7% [9] Net Margin - ACGL's proforma net margin for the trailing 12 months is 33.7%, significantly higher than ALL's margin of 2.3% [10] Conclusion - Comparative analysis indicates that ACGL outperforms ALL in price performance, return on capital, leverage, and net margin, while ALL leads in dividend yield and growth projections [11]

If you have a budget of around $1,000 and you’d like to buy some solid stocks to beat the market, I’ve got you covered! The stocks in this article total around ~$383 as of writing if you bought one of each. With a modest $1,000 investment, you have ample dry powder to allocate into whichever stocks you like the most and potentially have money left over to dabble in some penny stocks as well.Investing with a limited budget can be daunting, but as the saying goes, “Mighty oaks from little acorns grow.” Even w ...

U.S. stock markets have maintained their northbound journey in the first quarter of 2024 after an impressive 2023. After that, Wall Street melted in April, only to regain momentum in May. April is generally known to be favorable to investors. However, this year’s April was a disappointing one. Similarly, the adage — “Sell in May and go away” — is unlikely to prevail this year.Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have rallied 5.8%, 11.9% and 13.4%, res ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.It also includes access to the Zacks Style Scores.What ar ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Arch Capital Group (ACGL) .Arch Capital currently has an average ...

The Property and Casualty (P&C) insurance space is set to benefit from better pricing, prudent underwriting, increased exposure, an improving rate environment and a solid capital position. With the ongoing economic expansion, insurers remain well-poised for growth.The Zacks-defined Property and Casualty Insurance industry is currently in the top 14% of the Zacks Industry Rank. In the past year, the industry has provided 26.6% returns, while its year-to-date return is 15.1%. Since it is ranked in the top hal ...