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Pembroke, Bermuda-based Arch Capital Group Ltd. (ACGL) provides insurance, reinsurance, and mortgage insurance products. Valued at $38.36 billion by market cap, the company offers insurance products for casualty, property, directors’ and officers’ liability, errors and omissions liability, crime, fiduciary liability, professional indemnity, travel, accident, energy, marine, and aviation. ACGL provides reinsurance products for casualty, property, excluding property catastrophes, marine, and aviation. It also offers mortgage insurance and reinsurance.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and ACGL perfectly fits that description, signifying its substantial size, stability, and dominance in its industry.
The leading property and casualty insurer has fallen 1.6% from its 52-week high of $103.79, which it hit on May 23. Shares of ACGL are up 12.3% over the past three months, outperforming the broader Nasdaq Composite’s ($NASX) 8.1% gains over the same time frame.
Longer term, ACGL shares have risen 41.1% over the past year, and in 2024, the stock is up 37.5%. By contrast, the NASX is up 18% on a YTD basis and 31.3% over the past 52 weeks.
Since mid-January, the stock has been trading above its 50-day and 200-day moving averages, indicating a bullish price trend.
On Apr. 29, ACGL reported its Q1 results. Its adjusted EPS came in at $2.45, surpassing the consensus estimate of $2.06. The company’s revenue stood at $3.94 billion, beating the Wall Street estimates of $3.77 billion. Shares of ACGL closed up more than 2% in the session following the day the results were released and have been on an uptrend since then.
Rival American International Group, Inc. (AIG) has underperformed ACGL with 34.9% gains in the past 52 weeks and a 10% increase on a YTD basis.
With its recent outperformance compared to the NASX, analysts remain optimistic about ACGL’s prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it, and the mean price target of $105.53 is only a 3.3% premium to current levels.
On the date of publication, Dipanjan Banchur 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.
