Arch Capital Group (ACGL) is a Top-Ranked Growth Stock: Should You Buy?

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]