Per the latest Earnings Preview, the Finance sector’s second-quarter 2024 earnings are expected to improve 14.7%. Revenues are estimated to rise 7.2%. Results of Insurance, one of the Finance sector industries, are likely to reflect better pricing and exposure growth, accelerated digitalization and an improved interest rate. However, cat losses are likely to have weighed on profitability.With the help of the Zacks Stock Screener, we have identified four insurers, namely, Arch Capital Group Ltd. (ACGL) , The ...

In the latest trading session, Arch Capital Group (ACGL) closed at $96.40, marking a +0.18% move from the previous day. The stock outpaced the S&P 500's daily loss of 2.32%. Elsewhere, the Dow lost 1.25%, while the tech-heavy Nasdaq lost 3.64%.Coming into today, shares of the property and casualty insurer had lost 5.8% in the past month. In that same time, the Finance sector lost 1.37%, while the S&P 500 gained 1.79%.Analysts and investors alike will be keeping a close eye on the performance of Arch Capital ...

The market expects Arch Capital Group (ACGL) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be rel ...

Economic Outlook - Investment commentators are divided on the U.S. economy's trajectory, with one camp predicting a recession and declining long-term interest rates, while the other believes government spending will prevent a recession and lead to rising long-term interest rates [2] - The U.S. budget deficit's impact on interest rates, inflation, and future taxes is crucial for market outlooks, with expectations of rising long-term interest rates due to unrestrained government spending [2][4] Property & Casualty Industry - The Property & Casualty (P&C) industry is expected to benefit from the trend of rising interest rates, as P&C insurers invest in short-duration bond portfolios, protecting them from the negative impacts of long-term rate increases [2] - A long-term upward trajectory in the P&C industry is indicated by recent interest rate trends, with notable investments from major players like Berkshire Hathaway in companies such as Chubb Limited [4] Arch Capital Overview - Arch Capital operates in P&C, Reinsurance, and Mortgage insurance, with a diversified growth-oriented approach, allowing capital allocation across segments based on market dynamics [5] - Arch's underwriting results have shown improvement, particularly in its Mortgage and Reinsurance segments, with a declining combined ratio in Insurance from 96.8% in 2021 to 91.7% in 2023 [5] Financial Performance - Arch's earnings are projected to decline to $8.57 this year but are expected to rise to $8.91 by 2025, with a more optimistic estimate of ~$11.2 next year based on various growth assumptions [6] - The company is modeling a 20 basis point increase in investment income yield, which could add approximately $7 to $10 to the stock price, indicating a potential upside of 7% to 10% [7] Strategic Insights - Arch is positioned as a growth stock, focusing on acquisitions and share repurchases rather than dividends, with a target price indicating a 23% upside over the next year [9] - The potential for a higher valuation multiple suggests an upside of 45% if a multiple of 12.5 is applied, reflecting the new trends in the market [9]

Company Performance - Arch Capital Group (ACGL) ended the recent trading session at $97.16, showing a +0.68% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.28% [1] - Over the past month, shares of Arch Capital have depreciated by 0.78%, which is better than the Finance sector's loss of 2.84% but lagging behind the S&P 500's gain of 3.78% [1] Earnings Forecast - Arch Capital Group is expected to release its earnings on July 30, 2024, with a forecasted EPS of $2.16, reflecting a 12.5% increase from the same quarter last year [2] - The revenue forecast for the upcoming quarter is $3.9 billion, indicating a growth of 21.54% compared to the corresponding quarter of the previous year [2] - For the full year, the projected earnings are $8.58 per share and revenue of $16.06 billion, showing changes of +1.54% and +19.06% respectively from the previous year [2] Analyst Projections - Recent shifts in analyst projections for Arch Capital Group are important, as positive estimate revisions are seen as a good sign for the company's business outlook [3] - The Zacks Consensus EPS estimate has increased by 0.3% in the past month, and Arch Capital currently holds a Zacks Rank of 3 (Hold) [3] Valuation Metrics - Arch Capital Group has a Forward P/E ratio of 11.25, which is lower than the industry average Forward P/E of 12.55 [4] - The company has a PEG ratio of 1.61, compared to the industry average PEG ratio of 1.57 [4] - The Insurance - Property and Casualty industry, to which Arch Capital belongs, ranks in the top 22% of all industries, with a Zacks Industry Rank of 55 [4]

Core Viewpoint - Arch Capital Group Ltd. (ACGL) presents new business opportunities, rate improvements, growth in existing accounts, favorable estimates, and a solid capital position, making it a worthy addition to investment portfolios [1] Growth Projections - The Zacks Consensus Estimate for Arch Capital's 2024 earnings per share indicates a 1.18% increase from the previous year, with revenues projected at $16 billion, reflecting an 18.5% year-over-year improvement [2] - For 2025, earnings per share and revenues are expected to increase by 6.4% and 13.7%, respectively, compared to 2024 estimates [2] - Earnings have grown by 32.3% over the past five years, outperforming the industry average of 10.5% [2] Northbound Estimate Revision - The Zacks Consensus Estimate for 2024 and 2025 earnings has increased by 1.42% and 1.56%, respectively, in the last 60 days, indicating analysts' optimism [3] Earnings Surprise History - Arch Capital has exceeded earnings estimates in each of the last four quarters, with an average surprise of 28.41% [4] Zacks Rank & Price Performance - ACGL currently holds a Zacks Rank 3 (Hold) and has seen a stock price increase of 29.1% over the past year, compared to the industry's growth of 19.1% [5] Style Score - Arch Capital has a VGM Score of A, indicating attractive value, strong growth, and promising momentum [7] Return on Equity - The annualized return on equity for Arch Capital is 24.6%, which is 230 basis points higher year-over-year and significantly above the industry average of 7.8% [8] Business Tailwinds - Arch Capital benefits from new business opportunities, rate increases, growth in existing accounts, and expansion in Australian single-premium mortgage insurance [9] - The company is pursuing inorganic growth through acquisitions, enhancing operations, and diversifying its business, including a recent agreement to acquire Allianz's U.S. MidCorp and Entertainment insurance business [9] Financial Strength - Investment income is expected to improve due to a growing base of invested assets and strong cash flows [10] - Arch Capital has a robust balance sheet characterized by high liquidity and low leverage, which supports growth initiatives [10] - The company has maintained a free cash flow conversion rate of over 85% in recent quarters, reflecting solid earnings [10] - Long-term earnings growth is projected at 6.8%, with a Growth Score of B [10]

Industry Overview - Macroeconomic headwinds such as high interest rates, inflation, poor economic growth, and global conflicts are causing market volatility [1] - Despite these challenges, the insurance industry has outperformed the Zacks S&P 500 composite and the Finance sector, with a year-to-date increase of 16.7% compared to 14.6% and 5.5% respectively [1] Factors Driving the Industry - AM Best anticipates profitable commercial lines and improving personal lines, along with higher investment returns, to enhance industry performance in 2024 [2] - Swiss Re projects a 7% growth in premiums for 2024 and a 4.5% increase for 2025, with personal auto expected to outperform other lines [2] - The combined ratio is estimated to be 98.5% in 2024, indicating improved profitability [2] Company Highlights - **Arch Capital Group Ltd. (ACGL)**: Expected long-term earnings growth rate of 6.8%, with a Zacks Consensus Estimate for 2024 indicating a year-over-year growth of 1.2% [8] - **AXIS Capital Holdings Limited (AXS)**: Anticipated long-term earnings growth rate of 27.1%, with a Zacks Consensus Estimate for 2024 showing a year-over-year growth of 2.6% [9] - **The Hartford Financial Services Group, Inc. (HIG)**: Expected long-term earnings growth rate of 12.2%, with a year-over-year increase of 11.6% in the 2024 earnings per share [10][11] - **Old Republic International Corporation (ORI)**: Expected year-over-year increase of 3.8% in 2024 earnings per share, with a recent upward revision of 1.1% in earnings estimates [11][12] Investment Insights - The insurance industry is experiencing accelerated digitalization to enhance scale and efficiency, which supports growth initiatives and shareholder returns [4] - Low-beta stocks are recommended for steady performance in turbulent markets, with a focus on stocks that have shown positive price movement and substantial trading volume [5][6][7]

The latest trading session saw Arch Capital Group (ACGL) ending at $102.43, denoting a +0.53% adjustment from its last day's close. This change outpaced the S&P 500's 0.31% loss on the day. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq lost 1.09%.The property and casualty insurer's shares have seen a decrease of 1.42% over the last month, surpassing the Finance sector's loss of 1.77% and falling behind the S&P 500's gain of 2.73%.The upcoming earnings release of Arch Capital Group will be of ...

Company Performance - Arch Capital Group (ACGL) closed at $100.80, with a gain of +1.6% from the previous trading session, outperforming the S&P 500's gain of 0.25% [1] - Over the past month, shares of Arch Capital Group have decreased by 0.96%, while the Finance sector has lost 2.3% and the S&P 500 has gained 3.34% [1] - The upcoming earnings release is expected to show an EPS of $2.16, a 12.5% increase year-over-year, and projected revenue of $3.9 billion, reflecting a 21.62% rise from the same quarter last year [1] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $8.55 per share and revenue at $16 billion, indicating changes of +1.18% and +18.58% from the prior year [2] - Recent changes to analyst estimates indicate positive revisions, reflecting optimism about the company's business and profitability [2] Valuation Metrics - Arch Capital Group has a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having increased by 0.02% in the past month [3] - The company is currently trading at a Forward P/E ratio of 11.6, which is below the industry average of 12.3, suggesting it is trading at a discount [3] - The PEG ratio for Arch Capital Group is 1.7, compared to the industry average PEG ratio of 1.49 [3] Industry Overview - The Insurance - Property and Casualty industry is part of the Finance sector and holds a Zacks Industry Rank of 20, placing it in the top 8% of over 250 industries [4] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]

MEMPHIS, Tenn., June 13, 2024 /PRNewswire/ -- Pittco Management, LLC ("Pittco") is pleased to announce its equity investment in Pershing Square through a primary equity sale transaction. Pershing Square Capital Management, L.P. ("PSCM") sold a 10% common equity interest in Pershing Square Holdco, L.P. ("Pershing Square")—a newly formed limited partnership owning 100% of PSCM—to a consortium of strategic investors for $1.045 billion. In addition to Pittco, this consortium includes Arch Capital Group Ltd. (NA ...