Arch Capital Group Ltd. (ACGL), headquartered in Pembroke, Bermuda, provides financial services. With a market cap of $32.8 billion, the company offers life, health, and property insurance and reinsurance products, as well as mortgage insurance products.
Shares of this insurance giant have underperformed the broader market over the past year. ACGL has gained marginally over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 25.2%. In 2026, ACGL stock is down 2%, compared to the SPX’s 8.2% rise on a YTD basis.
Narrowing the focus, ACGL’s outperformance is apparent compared to the Invesco KBW Property & Casualty Insurance ETF (KBWP). The exchange-traded fund has declined about 3.5% over the past year. Moreover, the stock’s dip on a YTD basis outshines the ETF’s 6.7% losses over the same time frame.
On Apr. 28, ACGL shares closed up marginally after reporting its Q1 results. Its adjusted EPS of $2.50 surpassed Wall Street expectations of $2.45. The company’s net premiums written stood at $4.3 billion, down 3.7% year over year.
For the current fiscal year, ending in December, analysts expect ACGL’s EPS to decline 5.6% to $9.29 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering ACGL stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” 10 “Holds,” and two “Strong Sells.”
The configuration has been consistent over the past three months.
On May 5, Mizuho Financial Group, Inc. (MFG) kept a “Neutral” rating on ACGL and lowered the price target to $101, implying a potential upside of 7.5% from current levels.
The mean price target of $108.38 represents a 15.3% premium to ACGL’s current price levels. The Street-high price target of $125 suggests a notable upside potential of 33%.
On the date of publication, Neha Panjwani 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.
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