Arch Capital Group (NASDAQ: ACGL), a multi-line Insurance company in insurance, reinsurance, and mortgage segments. It is based in Bermuda and serving globally. It oversees casualties, property catastrophe, construction, national accounts, and other areas. It has an annual revenue of $6.8 billion and $1.29 billion earnings till March 2020.
If you are currently holding any ACGL stock or planning to invest, you would want to know the recent trends of the company stock performance. Here’s what happened in the last three months:
- After the March catastrophic drop to $16.33 low, there has been a slow growth since last the 3 months from May to July. Although the short term, mid-term, and long term outlooks are up sided. ACGLP in the E series (non-cumulative) is trading at $25.02 currently as shown in NASDAQ: ACGLP at https://www.webull.com/quote/nasdaq-acglp. AGCLO of F series (non-cumulative) on the other hand, is trading at $25.75 currently. Both the trends are slightly lagging compared to SPX and IXIC average.
- ACGL’S 7-day return is at 6.2% that outperformed the U.S Insurance industry average of 4.5%. Taking into account the 90 days return, it has been 18.8%, still higher than the 14.9% industrial average.
- ACGL stocks trading at $30.04 is 20% overvalued than the estimated $20.47.
- The company’s P/E ratio is 9.4 which can be considered a positive factor since the Industrial average to be 13.9 and the market to be 16.6.
- Price-Earning to Growth ratio (PEG) stands at 0.2 for ACGL. This undervaluation of growth can be favorable for buyers who want to invest for the long term.
- Despite the $ 148 million losses faced due to pandemic, it is still running on a high-profit margin of 19.1% which surpasses the last year’s profit margin 17.3%. The overall performance of AGCL has been positive for the last 5 years given the 17% growth in earnings each year. 2020 fall back seems to be only temporary.
The Risk Factor
- The market volatility is neutral to low for ACGL in the upcoming 5 years. But currently, the charts are mixed. High volatility can be seen in stock prices during the last 6 months.
- This year ACGL faced an industrial decline of 19%. But its diverse investments, steady availability of premiums, and financial flexibility may relief them from the losses and get them back on the game.
- Return on Equity ROE) and return on assets (ROS) for ACGL is predicted to remain low for the remaining quarters of 2020.
It has been a rough year for the Share market especially on the share holder’s perspective. Nevertheless, next year the share prices are expected to bounce back. If you do not know how to buy stocks online, you can check at online trading platforms. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.