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

Zacks Equity Research
·2 min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

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Arch Capital Group (ACGL)

Established in 1995 and headquartered in Pembroke, Bermuda, Arch Capital Group Ltd. offers insurance, reinsurance and mortgage insurance across the world. Through its wholly owned subsidiaries, the property and casualty (P&C) insurer provides a wide range of products and services, which include primary and excess casualty coverages, professional indemnity,  workers compensation and umbrella liability and employers  liability insurance coverages to name a few. The company offers a full range of property, casualty and mortgage insurance and reinsurance lines, while maintaining focus on writing specialty lines of insurance and reinsurance.

ACGL boasts a Value Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Arch Capital Group are trading at a forward earnings multiple of 11.4X, as well as a PEG Ratio of 1.1, a Price/Cash Flow ratio of 15.6X, and a Price/Sales ratio of 2.7X.

A company's earnings performance is important for value investors as well. For fiscal 2022, one analyst revised their earnings estimate higher in the last 60 days for ACGL, while the Zacks Consensus Estimate has increased $0.05 to $4.07 per share. ACGL also holds an average earnings surprise of 15.4%.

ACGL should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report

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Zacks Investment Research