Workflow
Arch Capital .(ACGL)
icon
Search documents
Why Arch Capital Group (ACGL) is a Top Momentum Stock for the Long-Term
ZACKS· 2024-09-17 14:55
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) Outperforms Broader Market: What You Need to Know
ZACKS· 2024-09-16 23:21
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 ...
Are You Looking for a Top Momentum Pick? Why Arch Capital Group (ACGL) is a Great Choice
ZACKS· 2024-09-16 17:00
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 ...
ACGL Stock Near 52-Week High: Should You Buy or Wait for a Pullback?
ZACKS· 2024-09-13 18:10
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].
5 High ROE Stocks to Buy as Market Dips on Soft Manufacturing Data
ZACKS· 2024-09-04 12:45
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 ...
4 P&C Insurance Stocks to Buy Amid Flat Pricing, Rate Cut Bets
ZACKS· 2024-09-03 19:10
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 ...
Arch Capital (ACGL) Is Considered a Good Investment by Brokers: Is That True?
ZACKS· 2024-09-03 14:30
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 ...
Buy These 3 Insurance Stocks That Outperform the S&P 500 in a Year
ZACKS· 2024-09-03 14:06
Better pricing, prudent underwriting and exposure growth have helped the insurance industry perform well. Redesigning and repricing of products and services to maintain sales and profitability, increased automation, prudent underwriting standards, and an improving rate environment are expected to drive premium growth and boost the industry’s efficiency.Price PerformanceThe insurance industry has outperformed the Zacks S&P 500 composite and the Finance sector in the past year. The insurance industry has rall ...
Why Is Arch Capital (ACGL) Up 15.9% Since Last Earnings Report?
ZACKS· 2024-08-29 16:38
A month has gone by since the last earnings report for Arch Capital Group (ACGL) . Shares have added about 15.9% 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 the most recent earnings report in order to get a better handle on the important catalysts. Arch Capital Q2 Earnings Beat, Premiums In ...
Is the Options Market Predicting a Spike in Arch Capital Group (ACGL) Stock?
ZACKS· 2024-08-29 14:55
Investors in Arch Capital Group Ltd. (ACGL) need to pay close attention to the stock based on moves in the options market lately. That is because the Sept 20, 2024 $60 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could ...