Is Arch Capital Group Stock Underperforming the Nasdaq?

Core Insights - Arch Capital Group Ltd. (ACGL) has a market capitalization of $33.8 billion and provides a wide range of insurance, reinsurance, and mortgage insurance solutions across various industries [1][2] - The company is classified as a "large-cap" stock, with tailored risk management programs that include protection for catastrophic losses and life reinsurance [2] Stock Performance - ACGL shares have declined 22.1% from their 52-week high of $116.47, while the stock has risen 1.8% over the past three months, underperforming the Nasdaq Composite's nearly 12% increase [3][4] - Year-to-date, ACGL stock is down 1.5%, lagging behind the Nasdaq's 13.8% gain, and has decreased 17.1% over the past 52 weeks compared to the Nasdaq's 26.3% return [4] Financial Performance - In Q2 2025, ACGL reported an operating income of $2.58 per share, but investors expressed caution due to weaker fundamentals, including a combined ratio deterioration of 250 basis points to 81.2 and a 26% year-over-year decline in operating cash flow to $1.1 billion [5] - Mortgage insurance performance lagged, with net premiums written down 8.3% and underwriting income off 17.1%, which offset gains in insurance and reinsurance [5] Analyst Sentiment - Despite the stock's underperformance relative to the Nasdaq, analysts maintain a moderately optimistic outlook on ACGL, with a consensus rating of "Moderate Buy" from 19 analysts and a mean price target of $107.65, representing an 18.3% premium to current levels [7]