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Arch Capital Group Ltd. (ACGL) is a Hamilton, Bermuda-based insurance company with a market cap of $36.5 billion. It provides a broad spectrum of products and services, including primary and excess casualty, professional indemnity, workers' compensation, umbrella, and employers' liability insurance. Arch Capital is scheduled to release its fiscal 2024 Q2 earnings results after the market closes on Tuesday, Jul. 30.
Ahead of the event, analysts expect Arch Capital to report a profit of $2.17 per share, up 13% from $1.92 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in each of the last four quarters.
Arch Capital’s EPS of $2.45 for the last reported quarter surpassed the consensus estimate by 18.9%, capitalizing on improved premiums and higher net investment income.
Looking ahead, analysts expect Arch Capital to report an EPS of $8.59 in fiscal 2024, up 1.7% from $8.45 in fiscal year 2023. Moreover, its fiscal 2025 EPS is projected to rise 6.2% annually to $9.12.
In 2024, ACGL stock surged by 30.8%, outperforming the broader S&P 500 Index's ($SPX) 18.8% gains on a YTD basis and the Financial Select Sector SPDR Fund’s (XLF) 15.7% returns during the same period.
On Apr. 29, ACGL released its Q1 results, and the stock rose marginally on that day and edged up 2.5% in the subsequent trading session. The company surpassed the top and bottom-line consensus estimates.
Additionally, the stock soared 4.2% on April 5 after Arch Capital's Arch Insurance North America announced the acquisition of the U.S. MidCorp and Entertainment insurance businesses from Allianz Global Corporate & Specialty SE for $450 million in cash. This acquisition is expected to significantly expand Arch Capital's presence in the U.S. middle market and enhance its product offerings and distribution relationships.
The consensus opinion on Arch Capital stock is “Moderate Buy” overall. Out of 16 analysts covering the stock, nine suggest a “Strong Buy,” two recommend a “Moderate Buy,” four advise a “Hold,” and the remaining one analyst gives a “Strong Sell” rating.
The average analyst price target for ACGL is $108.69, indicating a potential upside of 11.9% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
