Arch Capital Group (NASDAQ:ACGL) Stock, Quote.Headers.trade-ideas

Arch Capital Group

Arch Capital Group Ltd is a Bermuda company which writes insurance and reinsurance with operations in Bermuda, the United States, Canada, Europe, Australia and United Kingdom. The business operates through three underwriting segments: insurance, reinsurance, and mortgage two operating segments: corporate and other. The insurance segment provides specialty risk solutions to client across a variety of industries. The reinsurance segment provides reinsurance services which cover property catastrophe, property, liability, marine, aviation and space, trade credit and surety, agriculture, accident, life and health, and political risk. The mortgage business provides risk management and risk financing products to the mortgage insurance sectors through platforms in the U.S., Europe and Bermuda.

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The Zacks Property and Casualty Insurance industry has performed well so far this year, banking on better pricing, increased exposure, prudent underwriting, streamlined operations, global presence and a solid capital position. The industry has gained 32.1% year to date, outperforming the Finance sector&#39;s rise of 15.1% and the Zacks S&amp;P 500 composite&#39;s increase of 18.4%.

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The equity market was volatile in August, with the weakness seen early in the month dissipating amid a rise in rate-cut bets.

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Arch Capital Group Ltd

Arch Capital Group Ltd. - Depositary Shares, each Representing a 1/1,000th Interest in a 4.550% Non-Cumulative Preferred Share, Series G

Arch Capital Group Ltd. - Depositary Shares Each Representing 1/1,000th Interest in a Share of5.45% Non-Cumulative Preferred Shares, Series F

TD Cowen analyst Andrew Kligerman maintains Arch Capital Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NASDAQ">ACGL</a>) with a Buy and raises the price target from $116 to $138.

Price Target

TD Cowen Maintains Buy on Arch Capital Group, Raises Price Target to $138

12 analysts have shared their evaluations of Arch Capital Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NASDAQ">ACGL</a>) during the recent three months, expressing a mix of bullish and bearish perspectives.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $114.42, along with a high estimate of $125.00 and a low estimate of $104.00. Witnessing a positive shift, the current average has risen by 5.32% from the previous average price target of $108.64.
<img src="https://www.benzinga.com/files/images/story/2024/1725994867_0.png" alt="price target chart" />
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
The standing of Arch Capital Group among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Charlie Lederer</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Neutral</td>
<td>$114.00</td>
<td>$105.00</td>
</tr>
<tr>
<td>Alex Scott</td>
<td>Barclays</td>
<td>Announces</td>
<td>Equal-Weight</td>
<td>$120.00</td>
<td>-</td>
</tr>
<tr>
<td>Harry Fong</td>
<td>Roth MKM</td>
<td>Raises</td>
<td>Buy</td>
<td>$125.00</td>
<td>$110.00</td>
</tr>
<tr>
<td>Elyse Greenspan</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$110.00</td>
<td>$111.00</td>
</tr>
<tr>
<td>Meyer Shields</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Raises</td>
<td>Outperform</td>
<td>$121.00</td>
<td>$120.00</td>
</tr>
<tr>
<td>Scott Heleniak</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$112.00</td>
<td>$108.00</td>
</tr>
<tr>
<td>Matthew Carletti</td>
<td>JMP Securities</td>
<td>Raises</td>
<td>Market Outperform</td>
<td>$115.00</td>
<td>$110.00</td>
</tr>
<tr>
<td>David Motemaden</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>In-Line</td>
<td>$104.00</td>
<td>$100.00</td>
</tr>
<tr>
<td>Jimmy Bhullar</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$108.00</td>
<td>$106.00</td>
</tr>
<tr>
<td>Jay Cohen</td>
<td>B of A Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$118.00</td>
<td>$119.00</td>
</tr>
<tr>
<td>Jimmy Bhullar</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$106.00</td>
<td>$96.00</td>
</tr>
<tr>
<td>Cave Montazeri</td>
<td>Deutsche Bank</td>
<td>Raises</td>
<td>Buy</td>
<td>$120.00</td>
<td>$110.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Arch Capital Group. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Arch Capital Group compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of Arch Capital Group's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Arch Capital Group's market standing. Stay informed and make data-driven decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/ACGL/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Arch Capital Group analyst ratings.</a>
<h2>Discovering Arch Capital Group: A Closer Look</h2>
Arch Capital Group Ltd is a Bermuda company which writes insurance and reinsurance with operations in Bermuda, the United States, Canada, Europe, Australia and United Kingdom. The business operates through three underwriting segments: insurance, reinsurance, and mortgage two operating segments: corporate and other. The insurance segment provides specialty risk solutions to client across a variety of industries. The reinsurance segment provides reinsurance services which cover property catastrophe, property, liability, marine, aviation and space, trade credit and surety, agriculture, accident, life and health, and political risk. The mortgage business provides risk management and risk financing products to the mortgage insurance sectors through platforms in the U.S., Europe and Bermuda.
<h3>Key Indicators: Arch Capital Group's Financial Health</h3>
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Revenue Growth: Over the 3 months period, Arch Capital Group showcased positive performance, achieving a revenue growth rate of 31.2% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.
Net Margin: Arch Capital Group's net margin is impressive, surpassing industry averages. With a net margin of 30.99%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Arch Capital Group's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 6.56%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Arch Capital Group's ROA excels beyond industry benchmarks, reaching 1.96%. This signifies efficient management of assets and strong financial health.
Debt Management: Arch Capital Group's debt-to-equity ratio is below the industry average. With a ratio of 0.14, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<h2>How Are Analyst Ratings Determined?</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Expert Outlook: Arch Capital Group Through The Eyes Of 12 Analysts

Citigroup analyst Charlie Lederer maintains Arch Capital Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NASDAQ">ACGL</a>) with a Neutral and raises the price target from $105 to $114.

Citigroup Maintains Neutral on Arch Capital Group, Raises Price Target to $114

Barclays analyst Alex Scott initiates coverage on Arch Capital Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NASDAQ">ACGL</a>) with a Equal-Weight rating and announces Price Target of $120.

Initiation

Barclays Initiates Coverage On Arch Capital Group with Equal-Weight Rating, Announces Price Target of $120

Arch Capital Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NASDAQ">ACGL</a>) has outperformed the market over the past 15 years by 8.53% on an annualized basis producing an average annual return of 20.22%. Currently, Arch Capital Group has a market capitalization of $42.59 billion. 
Buying $100 In ACGL: If an investor had bought $100 of ACGL stock 15 years ago, it would be worth $1,573.96 today based on a price of $113.25 for ACGL at the time of writing.
<h3>Arch Capital Group's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725478215_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $100 Invested In Arch Capital Group 15 Years Ago Would Be Worth Today

The Zacks Property and Casualty Insurance industry has performed well so far this year, banking on better pricing, increased exposure, prudent underwriting, streamlined operations, global presence and a solid capital position. The industry has gained 32.1% year to date, outperforming the Finance sector&#39;s rise of 15.1% and the Zacks S&amp;P 500 composite&#39;s increase of 18.4%. The group&#39;s Zacks Industry Rank places it in the top 10% of more than 250 Zacks industries and earnings estimates for the current year have increased 12.4% year over year.
However, after seven years of increase, the industry has been witnessing flat pricing. Also, the prospect of an interest rate cut by the Fed this month adds pressure.
Despite the challenges, Heritage Insurance Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hrtg#NYSE">HRTG</a>), Arch Capital Group Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/acgl#NASDAQ">ACGL</a>), AXIS Capital Holdings Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/axs#NYSE">AXS</a>) and NMI Holdings, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nmih#NASDAQ">NMIH</a>) are poised to do well and are strong contenders for addition to one&#39;s portfolio for better returns. These insurers have outperformed the industry year to date and are poised to retain the rally given their solid prospects.
<h3>Industry Outperformers</h3>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/37/76406.jpg?v=1700416073" />
Image Source: Zacks Investment Research
<h2>Flat Pricing in Q2</h2>
After 26 straight quarters of year-over-year rise, pricing stayed flat in the second quarter of 2024. Per Marsh&#39;s Global Insurance Market Index, pricing declined 1% sequentially. Per Marsh, the continued moderation of rates was largely due to increasing competition among insurers in the global property market, as published in Insurance Journal.
Per Marsh, region-wise, &quot;on average, Q2 rates decreased by 5% in Canada and the Pacific, and by 3% in the UK and in Asia regions. Rates increased in the US and Europe by 1%, and by 4% in the Latin America and the Caribbean and India, Middle East, and Africa (IMEA) regions.&quot;
Business line wise, property insurance rates globally were flat, casualty lines rates increased 3% globally, while global financial and professional lines (FinPro) rates decreased 5% globally for the eighth consecutive quarter. Cyber insurance rates decreased 6% globally.
Pricing, a crucial underwriting action, plays an important part in driving premiums and addressing claims payment prudently, thus benefiting underwriting profitability.
Per Deloitte Insights, gross premiums are estimated to increase sixfold to $722 billion by 2030. China and North America should account for more than two-thirds of the global market, per the report. Analysts at Swiss Re Institute predict premiums to grow 7% in 2024 and 4.5% in 2025.
<h2>Interest Rate Cut in the Cards?</h2>
After 11 rate hikes since March 2022, a rate cut in September FOMC seems inevitable as inflation approaches the target of 2% and on stable employment and improved retail sales data.
The current interest rate of 5.25%-5.5% marks the highest level in more than two decades.
Fed Chairman Jerome Powell at Jackson Hole stated, &quot;The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.&quot;
Rates were last raised by 25 basis points in July 2023.
Per a report published in The Guardian, based on trading in financial markets, investors see about a 76% chance of a 25-basis point cut in interest rates in September.
Insurers are direct beneficiaries of a rising rate environment. They invest a portion of their premiums. Long-tail insurers tend to gain more from rising rates as they have more time to invest their premiums and earn a higher rate of return.
As far as commercial insurers are concerned, low interest rates can make it difficult for them to maintain adequate reserves for long-tail liabilities. This can lead to increased volatility in claims reserve.
<h2>Stocks to Bet On</h2>
With the help of the Zacks Stock Screener, we have selected five P&amp;C insurers that have an impressive Value Score of A or B. Each of these stocks either carries a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy). Back-tested results have shown that stocks with a solid Value Score and a favorable Zacks Rank are the most attractive and their returns are better.
Heritage Insurance: Tampa, FL-based HRTG provides personal and commercial residential insurance products. Its focus on rate adequacy, selective underwriting and profit-oriented underwriting criteria while restricting new business in over-concentrated markets or products poises it well for growth. This Zacks Rank #1 insurer has strategically diversified its portfolio to achieve better risk distribution, claims trends and lower reinsurance costs.
The Zacks Consensus Estimate for HRTG&#39;s 2024 and 2025 earnings suggests 10.3% and 18.1% year-over-year growth, respectively. The consensus estimate for 2024 and 2025 has moved up 33.1% and 26.7%, respectively, in the past 30 days.
The stock currently has a P/B ratio of 1.94. It has a Value Score of A.
Arch Capital Group: Pembroke, Bermuda-based Arch Capital is a leading specialty P&amp;C and mortgage insurer and is poised to gain from new business opportunities, rate improvement, growth in existing accounts and a solid capital position. Widespread operations coupled with a compelling product portfolio provide meaningful diversification and earnings stability to this Zacks Rank #2 insurer. Its international expansion strengthens operational capabilities while diversifying business at attractive risk-adjusted returns.
The Zacks Consensus Estimate for ACGL&#39;s 2024 and 2025 earnings suggests 6.6% and 2.5% year-over-year growth, respectively. The consensus estimate for 2024 and 2025 earnings has moved 1.3% and 0.4% north in the past 30 days. The expected long-term earnings growth rate is 6.1%.
The stock currently has a P/B ratio of 2.14. It has a Value Score of B.
Axis Capital Holdings: Bermuda-based Axis Capital focuses on growth areas, including wholesale insurance and lower middle markets, deploying resources prudently while enhancing efficiencies and improving its portfolio mix and underwriting profitability. AXIS Capital is also working with its distribution partners to use expanding digital capabilities to create new business growth in desirable smaller accounts. AXS, aiming for leadership in specialty risks, has an impressive dividend history. It has hiked dividends for 18 straight years and boasts one of the highest dividend yields among its peers. It sports a Zacks Rank #1.
The Zacks Consensus Estimate for AXS&#39; 2024 and 2025 earnings suggests 8.6% and 8.4% year-over-year growth, respectively. The consensus estimate for 2024 and 2025 has moved up 1.7% and 1.8%, respectively, in the past 30 days. The expected long-term earnings growth rate is pegged at 27.8%, better than the industry average of 11%.
The stock currently has a P/B ratio of 1.32. It has a Value Score of A.
NMI Holdings: Headquartered in Emeryville, CA, NMIH provides private mortgage insurance through its wholly-owned insurance subsidiaries in the United States. Improving mortgage insurance portfolio, higher new insurance written volume, a comprehensive reinsurance program and a solid capital position poise the insurer well for growth. The expected long-term earnings growth rate is pegged at 9.8%. This Zacks Rank #2 insurer generates solid mid-teens shareholders&#39; returns.
The Zacks Consensus Estimate for NMIH&#39;s 2024 and 2025 earnings suggests 8.6% and 8.4% year-over-year growth, respectively. The consensus estimate for 2024 and 2025 has moved up 1.4% and 1.1%, respectively, in the past 30 days. The expected long-term earnings growth rate is pegged at 9.8%.
The stock currently has a P/B ratio of 1.6. It has a Value Score of B.
<a href="https://www.zacks.com/stock/news/2330991/4-p-c-insurance-stocks-to-buy-amid-flat-pricing-rate-cut-bets?cid=CS-BENZ-FT-analyst_blog|investment_ideas-2330991">To read this article on Zacks.com click here.</a>

4 P&C Insurance Stocks to Buy Amid Flat Pricing, Rate Cut Bets

August saw the <a href="https://www.benzinga.com/news/earnings/24/08/40648231/wall-street-poised-for-strong-start-as-inflation-data-looms-strategist-says-brace-for-volatile-fall">equity market make good the losses</a> it experienced post its mid-July peak, with earnings and benign data helping the fightback. With August in the rearview mirror, here&#8217;s a look at the leaders and laggards among the S&amp;P 500 Index, a broader gauge of market performance.
3-Part Trend: The month&#8217;s trading could be characterized as a tale of three trends. Stocks extended the weakness into August, with the S&amp;P 500 bottoming on Aug. 5, coinciding with the collapse of the global equity markets. The unwinding of the yen carry trades due to the yen&#8217;s strength perked up risk aversion, sending Japanese stocks into a tailspin, and the reverberations became evident elsewhere.
The S&amp;P 500 Index fell 4.3% intraday on Aug. 5, which happened to be a Monday. The collapse was promptly dubbed Black Monday 2.0 to differentiate it from the Black Monday crash of Oct. 1987. The CBOE Volatility Index, commonly called VIX, more than doubled to 65.73 intraday before pulling back. 
On a positive note, the S&amp;P 500 closed off the lows of the day and was down a more modest 3% by the close.
The market saw a steady recovery from the low through Aug. 22, thanks to a slew of catalysts that reinforced expectations that the Federal Open Market Committee would begin cutting rates at its September meeting.
The strong and rapid recovery pushed traders on the defensive, and the market has been moving sideways since then. 
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="819" height="630" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/31133559/image-325.png" alt="" class="wp-image-524474" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/31133559/image-325.png 819w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/31133559/image-325-300x231.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/31133559/image-325-768x591.png 768w" sizes="(max-width: 819px) 100vw, 819px" /></figure>
Source: Yahoo Finance
For August, the S&amp;P 500 Index gained 2.28%, ending the month at 5,648.40, off its record closing high of 5,667.20 hit on July 16.
See Also: <a href="https://www.benzinga.com/money/best-growth-stocks">Best Growth Stocks Right Now</a>
The Leaders: None of the Magnificent seven stocks, which have been spearheading the broader market uptrend since the start of the 2023, made it to the list of the top 10 gainers. The list featured two cybersecurity companies, namely CrowdStrike Holdings, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) and Fortinet, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>). CrowdStrike was rebounding from its global-outage-induced slump seen since July 19. 
Fortinet was helped by a strong post-earnings rally.
Two household and personal care products companies also made the cut, while a management change did the truck for coffee chain Starbucks Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>).
The top 10 gainers for the month are:
<ul>
<li>Packaged food company Kellanova&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/K#NYSE">K</a>) (+38.62%) (upside primarily due to the rumors of a buyout by privately-held Mars and the subsequent confirmation of the deal)</li>
<li>Fortinet (+32.17%)</li>
<li>Starbucks (+26.52%)</li>
<li>Axon Enterprise, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>) (+21.65%); Much of the gains stemmed from a post-earnings bump seen on Aug.7)</li>
<li>Clorox Company&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLX#NYSE">CLX</a>) (+21.02%)</li>
<li>CrowdStrike (+19.54%)</li>
<li>Kenvue Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KVUE#NYSE">KVUE</a>) (+19.88%)</li>
<li>Best Buy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBY#NYSE">BBY</a>) (+16.04%)</li>
<li>Arch Capital Group Ltd.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NYSE">ACGL</a>) (+18.07%)</li>
<li>Progressive Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PGR#NYSE">PGR</a>) (+17.78%)</li>
</ul>
The Laggards: Artificial intelligence server manufacturer Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>), which had a dream run after its inclusion in the S&amp;P 500 Index, plummeted following a short report and the delay flagged by the company in filing its 10-K report. Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), which is fraught with fundamental risk, was also one of the worst performers for the month.
A few retailers ended up in the list of the top 10 S&amp;P 500 decliners for August.
The top 10 losers for the month are:
<ul>
<li>Super Micro (-37.62%)</li>
<li>Moderna, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>) (-35.08%)</li>
<li>Dollar General Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DG#NYSE">DG</a>) (-31.08%)</li>
<li>Intel (-27.86%)</li>
<li>Walgreens Boots Alliance, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBA#NASDAQ">WBA</a>) (-20.19%)</li>
<li>Dollar Tree, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DLTR#NASDAQ">DLTR</a>) (-19.02%)</li>
<li>Charles River Laboratories International, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRL#NYSE">CRL</a>) (-18.99%)</li>
<li>Airbnb, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>) (-15.94)</li>
<li>Bath &amp; Body Works, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBWI#NYSE">BBWI</a>) (-15.80%)</li>
<li>Etsy, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ETSY#NASDAQ">ETSY</a>) (-15.43%)</li>
</ul>
Earnings reactions triggered the weakness seen in some of these stocks, including Intel, and <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40139012/moderna-stock-trading-lower-on-dismal-guidance-analysts-cuts-price-targets-noting-c">Moderna, which reduced its full-year forecast.</a>
With the Fed all but decided on a September rate cut, some of these beaten-down stocks, especially those in the retail space, could stage a turnaround. 
The SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), an exchange-traded fund that tracks the S&amp;P 500 Index, ended Friday&#8217;s session up 0.95% at $563.68, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40594093/economist-peter-schiff-warns-fed-may-be-committing-mistake-by-lowering-rates-in-sep">Economist Peter Schiff Warns Fed May Be Committing Mistake By Lowering Rates In September As Dollar Index Falls To Lowest In Over A Year</a></li>
</ul>

Magnificent 7 Miss Out, 2 Cybersecurity Stocks Stand Firm, Retailers Lag In Volatile August: Here Are The Top S&P 500 Gainers And Losers

Across the recent three months, 11 analysts have shared their insights on Arch Capital Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NASDAQ">ACGL</a>), expressing a variety of opinions spanning from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Insights from analysts' 12-month price targets are revealed, presenting an average target of $114.36, a high estimate of $125.00, and a low estimate of $104.00. This current average has increased by 4.92% from the previous average price target of $109.00. 
<img src="https://www.benzinga.com/files/images/story/2024/1724439703_0.png" alt="price target chart" />
<h2>Diving into Analyst Ratings: An In-Depth Exploration</h2>
The standing of Arch Capital Group among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Harry Fong</td>
<td>Roth MKM</td>
<td>Raises</td>
<td>Buy</td>
<td>$125.00</td>
<td>$110.00</td>
</tr>
<tr>
<td>Elyse Greenspan</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$110.00</td>
<td>$111.00</td>
</tr>
<tr>
<td>Meyer Shields</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Raises</td>
<td>Outperform</td>
<td>$121.00</td>
<td>$120.00</td>
</tr>
<tr>
<td>Scott Heleniak</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$112.00</td>
<td>$108.00</td>
</tr>
<tr>
<td>Matthew Carletti</td>
<td>JMP Securities</td>
<td>Raises</td>
<td>Market Outperform</td>
<td>$115.00</td>
<td>$110.00</td>
</tr>
<tr>
<td>David Motemaden</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>In-Line</td>
<td>$104.00</td>
<td>$100.00</td>
</tr>
<tr>
<td>Jimmy Bhullar</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$108.00</td>
<td>$106.00</td>
</tr>
<tr>
<td>Jay Cohen</td>
<td>B of A Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$118.00</td>
<td>$119.00</td>
</tr>
<tr>
<td>Jimmy Bhullar</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$106.00</td>
<td>$96.00</td>
</tr>
<tr>
<td>Cave Montazeri</td>
<td>Deutsche Bank</td>
<td>Raises</td>
<td>Buy</td>
<td>$120.00</td>
<td>$110.00</td>
</tr>
<tr>
<td>Jay Cohen</td>
<td>B of A Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$119.00</td>
<td>$109.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Arch Capital Group. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Arch Capital Group compared to the broader market.</li>
<li>Price Targets: Understanding forecasts, analysts offer estimates for Arch Capital Group's future value. Examining the current and prior targets provides insight into analysts' changing expectations.</li>
</ul>
Capture valuable insights into Arch Capital Group's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/ACGL/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Arch Capital Group analyst ratings.</a>
<h2>Unveiling the Story Behind Arch Capital Group</h2>
Arch Capital Group Ltd is a Bermuda company which writes insurance and reinsurance with operations in Bermuda, the United States, Canada, Europe, Australia and United Kingdom. The business operates through three underwriting segments: insurance, reinsurance, and mortgage two operating segments: corporate and other. The insurance segment provides specialty risk solutions to client across a variety of industries. The reinsurance segment provides reinsurance services which cover property catastrophe, property, liability, marine, aviation and space, trade credit and surety, agriculture, accident, life and health, and political risk. The mortgage business provides risk management and risk financing products to the mortgage insurance sectors through platforms in the U.S., Europe and Bermuda.
<h3>Financial Milestones: Arch Capital Group's Journey</h3>
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Arch Capital Group displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 31.2%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.
Net Margin: Arch Capital Group's net margin excels beyond industry benchmarks, reaching 30.99%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Arch Capital Group's ROE stands out, surpassing industry averages. With an impressive ROE of 6.56%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Arch Capital Group's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.96% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Arch Capital Group's debt-to-equity ratio is below the industry average at 0.14, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>What Are Analyst Ratings?</h2>
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

The Analyst Landscape: 11 Takes On Arch Capital Group

Roth MKM analyst Harry Fong maintains Arch Capital Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NASDAQ">ACGL</a>) with a Buy and raises the price target from $110 to $125.

Roth MKM Maintains Buy on Arch Capital Group, Raises Price Target to $125

Arch Capital Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NASDAQ">ACGL</a>) has outperformed the market over the past 20 years by 9.26% on an annualized basis producing an average annual return of 17.72%. Currently, Arch Capital Group has a market capitalization of $38.47 billion. 
Buying $1000 In ACGL: If an investor had bought $1000 of ACGL stock 20 years ago, it would be worth $26,060.89 today based on a price of $102.31 for ACGL at the time of writing.
<h3>Arch Capital Group's Performance Over Last 20 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1724265014_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$1000 Invested In Arch Capital Group 20 Years Ago Would Be Worth This Much Today

Cincinnati Financial Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cinf#NASDAQ">CINF</a>) has been gaining momentum on the back of higher level of insured exposure, rate increase, agent-focused business model, consistent cash flow and a solid capital position.
<h3>Growth Projections</h3>
The Zacks Consensus Estimate for Cincinnati Financial&#39;s 2024 earnings per share indicates an increase of 9.1% from the year-ago reported number. The consensus estimate for revenues is pegged at $9.85 billion, implying a year-over-year improvement of 10.8%.
The consensus estimate for 2025 earnings per share and revenues indicates an increase of 7.1% and 10%, respectively, from the corresponding 2024 estimates.
<h3>Northbound Estimate Revision</h3>
The Zacks Consensus Estimate for 2024 and 2025 earnings has moved 5.6% and 0.8% north, respectively, in the past 30 days, reflecting analysts&#39; optimism.
<h3>Earnings Surprise History</h3>
Cincinnati Financial has a solid earnings surprise history. It beat estimates in each of the last four quarters, the average being 27%.
<h3>Zacks Rank &amp; Price Performance</h3>
Cincinnati Financial currently carries a Zacks Rank #3 (Hold). Year to date, the stock has gained 26.7% compared with the industry&#39;s growth of 23.7%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/b6/74566.jpg?v=1443931473" />
Image Source: Zacks Investment Research
<h3>Style Score</h3>
CINF has a VGM Score of B. The VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
<h3>Business Tailwinds</h3>
Prudent pricing, an agent-centric model, a higher level of insured exposures and disciplined expansion of Cincinnati Re should benefit premiums, the primary driver of an insurer&#39;s top line. We expect 2026 net earned premiums to witness a three-year CAGR of 8.5%. CINF boasts above-average industry premium growth.
The Excess and Surplus line has been performing well since its inception in 2008. This segment should continue to benefit from new business written, higher renewal written premiums and higher average renewal estimated pricing. Technology and data are also being used to identify new exposures in emerging businesses.
Improving interest income from fixed-maturity securities and a decrease in equity portfolio dividends in an improved rate environment should drive net investment income.
Notably, its free cash flow conversion has remained more than 150% over the last many quarters, reflecting its solid earnings.
Banking on operational efficiency that ensures continuous cash flows, this insurer boasts increasing dividends for 64 straight years. Its dividend yield of 2.4% is better than the industry average of 0.2%, making the stock an attractive pick for yield-seeking investors. Given the board&#39;s positive outlook and confidence in outstanding capital, liquidity and financial flexibility, we expect the momentum to continue.
Being a property and casualty insurer, CINF is exposed to catastrophe losses, inducing volatility in its underwriting profitability. Nonetheless, banking on prudent underwriting, CINF&#39;s solid track record of 34 years of favorable reserve development is appreciable.
CINF has been witnessing an increase in expenses over the past many years due to a rise in insurance loss and policyholder benefits as well as underwriting, acquisition and insurance expenses, resulting in margin contraction.
<h3>Stocks to Consider</h3>
Some better-ranked stocks from the property and casualty insurance industry are NMI Holdings Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nmih#NASDAQ">NMIH</a>), W.R. Berkley Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wrb#NYSE">WRB</a>) and Arch Capital Group Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/acgl#NASDAQ">ACGL</a>), each carrying a Zacks Rank #2 (Buy) at present.
NMI Holdings&#39; earnings surpassed estimates in each of the last four quarters, the average surprise being 10.15%. Shares of NMIH have jumped 28.9% year to date. The Zacks Consensus Estimate for NMIH&#39;s 2024 and 2025 earnings implies year-over-year growth of 15.6% and 5.5%, respectively.
W.R. Berkley&#39;s earnings surpassed estimates in each of the last four quarters, the average surprise being 11.43%. Shares of WRB have skyrocketed 22.1% year to date. The Zacks Consensus Estimate for WRB&#39;s 2024 and 2025 earnings implies year-over-year growth of 22.8% and 5.6%, respectively.
Arch Capital&#39;s earnings surpassed estimates in each of the last four quarters, the average surprise being 28.93%. Shares of ACGL have jumped 38.1% year to date. The Zacks Consensus Estimate for ACGL&#39;s 2024 and 2025 earnings implies year-over-year growth of 6.5% and 2.5%, respectively.
<a href="https://www.zacks.com/stock/news/2323877/here-s-why-hold-strategy-is-apt-for-cincinnati-financial-cinf?cid=CS-BENZ-FT-analyst_blog|rank_focused-2323877">To read this article on Zacks.com click here.</a>

Here's Why Hold Strategy is Apt for Cincinnati Financial

After a rocky start to the month that led to a global market rout, two major inflation data seemed to have steadied the ship as the broader equity markets inched closer to all-time highs reached in mid-July. While the producer price index (a measure of wholesale prices) was up 0.1% last month, the consumer price index (a broad-based measure of prices for goods and services) increased 0.2%. This put the 12-month inflation rate at 2.9% &mdash; the lowest since March 2021.
While the data gave an uncertain market some direction after the erratic movement last week, it also portrayed the resilience of the economy. This, in turn, led to optimism about a possible rate cut by the Federal Reserve next month, triggering an uptrend for the stocks. With a better-than-expected 2.8% annualized GDP growth in the second quarter and solid labor market conditions, it appeared that the economy was back on the growth track, cooling recessionary fears.
As investors employ a wait-and-see approach in a classic example of &quot;backing and filling&quot; in the market, they can benefit from &quot;cash cow&quot; stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios like return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. Upbound Group, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/upbd#NASDAQ">UPBD</a>), The AES Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aes#NYSE">AES</a>), Arch Capital Group Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/acgl#NASDAQ">ACGL</a>), PulteGroup, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/phm#NYSE">PHM</a>) and Banco de Chile (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bch#NYSE">BCH</a>) are some of the stocks with high ROE to profit from.
<h3>ROE: A Key Metric</h3>
ROE = Net Income/Shareholders&#39; Equity
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.
Moreover, ROE is often used to compare the profitability of a company with other firms in the industry &mdash; the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management&#39;s efficiency in rewarding shareholders with attractive risk-adjusted returns.
<h3>Screening Parameters</h3>
In order to shortlist stocks that are cash-rich with high ROE, we have added Cash Flow greater than $1 billion and ROE greater than X-Industry as our primary screening parameters. In addition, we have taken a few other criteria into consideration to arrive at a winning strategy.
Price/Cash Flow lesser than X-Industry: This metric measures how much investors pay for $1 of free cash flow. A lower ratio indicates that investors need to pay less for a better cash flow-generating stock.
Return on Assets (ROA) greater than X-Industry: This metric determines how much profit a company earns for every dollar of asset, which includes cash, accounts receivable, property, equipment, inventory and furniture. The higher the ROA, the better it is for the company.
5-Year EPS Historical Growth greater than X-Industry: This criterion indicates that continued earnings momentum has translated into solid cash strength.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Here are five of the 11 stocks that qualified the screening:
Upbound Group: Headquartered in Plano, TX, Upbound Group (formerly Rent-A-Center, Inc.) is a leading lease-to-own provider with operations in the United States, Puerto Rico and Mexico. The company provides services to a large portion of consumers by providing them access and the opportunity to obtain ownership of high-quality, durable products under a flexible lease purchase agreement with no long-term debt obligation.
The company delivered a trailing four-quarter earnings surprise of 3.8%, on average. It has a VGM Score of B. Upbound Group carries a Zacks Rank #2.
AES: Arlington, VA-based AES is a global power company. Its businesses are spread across four continents in 14 countries. The company has four Strategic Business Units located in the United States and other regions across the globe. AES remains one of the forerunners in the utility industry&#39;s transition to clean energy by investing in sustainable growth and innovative solutions while delivering superior results.
It delivered a trailing four-quarter earnings surprise of 19.2%, on average. AES carries a Zacks Rank #2.
Arch Capital: Headquartered in Pembroke, Bermuda, Arch Capital offers insurance, reinsurance and mortgage insurance across the world. It provides a wide range of products and services, which include primary and excess casualty coverages, professional indemnity, workers&#39; compensation and umbrella liability and employers&#39; liability insurance coverages. The company offers a full range of property, casualty and mortgage insurance and reinsurance lines while maintaining a focus on writing specialty lines of insurance and reinsurance.
It has a long-term earnings growth expectation of 6.1%. It delivered a trailing four-quarter earnings surprise of 28.9%, on average. It has a VGM Score of B. Arch Capital carries a Zacks Rank #2.
PulteGroup: Based in Atlanta, GA, PulteGroup engages in homebuilding and financial services businesses, primarily in the United States. The company conducts operations through two primary business segments &ndash; Homebuilding and Financial Services. The company engages in maintaining a 50/50 balance between build-to-order and spec sales, enabling it to meet immediate demand with spec homes while also accommodating buyers who prefer to customize their homes with build-to-order options.
The company has a long-term earnings growth expectation of 19% and delivered a trailing four-quarter earnings surprise of 10%, on average. It has a VGM Score of B. PulteGroup carries a Zacks Rank #2.&nbsp;
Banco de Chile: Headquartered in Santiago, Chile, Banco de Chile provides various banking services to customers in the Latin American country. These include deposit accounts, loans, payment-related cards and insurance solutions. The company also offers services such as cash management, treasury, financial advisory, trade finance, leasing, factoring, payment, payroll, collection, mutual fund management, securities brokerage, currency trading, investment management, collection, securitization and capital markets services.
It delivered a trailing four-quarter earnings surprise of 6.1%, on average. Banco de Chile carries a Zacks Rank #2.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.&nbsp;
<a href="https://www.zacks.com/stock/news/2322873/buy-5-high-roe-stocks-as-low-inflation-data-steadies-market?cid=CS-BENZ-FT-analyst_blog|rw-2322873">To read this article on Zacks.com click here.</a>

Management

UPBD

Buy 5 High ROE Stocks as Low Inflation Data Steadies Market

The Property and Casualty (P&amp;C) insurance space is set to benefit from better pricing, prudent underwriting, increased exposure, an improving rate environment and a solid capital position. With the ongoing economic expansion, insurers remain well-poised for growth.&nbsp;
The Zacks-defined Property &amp; Casualty Insurance Industry is currently in the top 24% of the Zacks Industry Rank. In the past year, the industry has provided 19.7% returns, while its year-to-date return is 19.5%. Since it is ranked in the top half of the Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.
<h2>Future Catalysts</h2>
Price hikes, operational strength, higher retention, strong renewal and the appointment of retail agents should help write higher premiums. The P&amp;C insurance industry is witnessing increased use of technology like blockchain, artificial intelligence, advanced analytics, telematics, cloud computing and robotic process automation that expedite business operations and save costs. Insurers continue to invest heavily in technology to improve basis points, scale and efficiencies.
Meanwhile, consolidation in the property and casualty industry is likely to continue as players look to diversify their operations into new business lines and geographies. Deloitte estimates more mergers and acquisitions in the reinsurance space in 2024.
Finally, a massive rise in the market interest rate will raise the cost of funds, enabling financial companies to widen the spread between longer-term assets, such as loans, with shorter-term liabilities, thus boosting the financial sector&#39;s profit margin.
<h2>Our Top Picks</h2>
We have narrowed our search to five P&amp;C insurers with strong potential for the rest of 2024. These stocks have seen positive earnings estimates in the last 30 days. Each of our picks carries a Zacks Rank #2 (Buy).
The chart below shows the price performance of our five picks in the past three months.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/f0/74260.jpg?v=1709561596" style="border-style:solid; border-width:1px" />
Image Source: Zacks Investment Research
Arch Capital Group Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/acgl#NASDAQ">ACGL</a>) boasts a strong product portfolio and has a solid track record of premium growth. Premiums should benefit from new business opportunities, rate increases, growth in existing accounts and growth in Australian single-premium mortgage insurance.&nbsp;
ACGL has also been diversifying its Mortgage Insurance business via strategic acquisitions that also complement the strength in the specialty insurance and reinsurance businesses. A solid capital position shields ACGL from market volatility. ACGL&#39;s growing Investment portfolio provides meaningful tailwinds to its bottom line. Strategic buyouts strengthen ACGL&#39;s portfolio and offer geographic diversification.&nbsp;
Arch Capital Group has an expected revenue and earnings growth rate of 15.1% and 5.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last seven days.
The Allstate Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/all#NYSE">ALL</a>) is witnessing consistent growth in premiums, thanks to strategic acquisitions and expanding ventures. Rate hikes to counter inflationary pressures on loss costs are expected to continue in ALL&#39;s auto insurance business for 2024.&nbsp;
ALL&#39;s focus on optimizing core operations has allowed it to redirect resources toward high-growth areas. The sale of ALL&#39;s Health &amp; Benefits division is expected to free up capital. Cost-saving initiatives are projected to boost profits. ALL&#39;s cash-generating abilities are crucial for returning capital to its shareholders.
The Allstate has an expected revenue and earnings growth rate of 9.6% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.5% in the last seven days.
The Progressive Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pgr#NYSE">PGR</a>) continues to gain on higher premiums, given its compelling product portfolio, leadership position and strength in both Vehicle and Property businesses. Focus on becoming a one-stop insurance destination, catering to customers opting for a combination of home and auto insurance, augurs well for PGR&#39;s growth.&nbsp;
Policies in force and retention ratio should remain healthy. Competitive pricing to retain current customers and address their needs with new offerings should continue to drive policy life expectancy.
The Progressive has an expected revenue and earnings growth rate of 19.5% and 96.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.1% in the last 30 days.
RLI Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rli#NYSE">RLI</a>) is one of the industry&#39;s most profitable property and casualty writers with an impressive track record of underwriting profits. A strong local branch office network, a broad range of product offerings, and a focus on specialty insurance lines contribute to RLI&#39;s profits.&nbsp;
RLI&#39;s ability to maintain the combined ratio at favorable levels even in the toughest operating environment reflects superior underwriting discipline. RLI&#39;s decision to drop underperforming products from its property business also bodes well. A strong capital position provides financial flexibility to operating subsidiaries and supports wealth distribution to shareholders.
RLI has an expected revenue and earnings growth rate of 18.1% and 22.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.6% over the last 30 days.
Root Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/root#NASDAQ">ROOT</a>) provides insurance products and services in the United States. ROOT offers automobile, homeowners, and renters&#39; insurance products. ROOT operates a direct-to-consumer model, and serves customers primarily through mobile applications, as well as through its website. ROOT&#39;s direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies.
Root has an expected revenue and earnings growth rate of more than 100% and 74.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 28.5% over the last 30 days.
<a href="https://www.zacks.com/stock/news/2321865/buy-5-property-casualty-insurers-to-enhance-your-portfolio?cid=CS-BENZ-FT-analyst_blog|investment_ideas-2321865">To read this article on Zacks.com click here.</a>

ROOT

Buy 5 Property & Casualty Insurers to Enhance Your Portfolio

Wells Fargo analyst Elyse Greenspan maintains Arch Capital Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NASDAQ">ACGL</a>) with a Overweight and lowers the price target from $111 to $110.

Wells Fargo Maintains Overweight on Arch Capital Group, Lowers Price Target to $110

Keefe, Bruyette &amp; Woods analyst Meyer Shields maintains Arch Capital Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NASDAQ">ACGL</a>) with a Outperform and raises the price target from $120 to $121.

Keefe, Bruyette & Woods Maintains Outperform on Arch Capital Group, Raises Price Target to $121

WIIM

Brighthouse Financial, Inc. - Common Stock

GOCO

OSCR

PLMR

RELI

SLQT

Shares of insurance companies are trading lower amid overall weakness following concerns for recently issued US economic data.

Arch Capital Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NASDAQ">ACGL</a>) has outperformed the market over the past 5 years by 7.22% on an annualized basis producing an average annual return of 20.22%. Currently, Arch Capital Group has a market capitalization of $36.66 billion. 
Buying $1000 In ACGL: If an investor had bought $1000 of ACGL stock 5 years ago, it would be worth $2,585.54 today based on a price of $97.63 for ACGL at the time of writing.
<h3>Arch Capital Group's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1722609024_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$1000 Invested In This Stock 5 Years Ago Would Be Worth $2,600 Today

RBC Capital analyst Scott Heleniak maintains Arch Capital Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NASDAQ">ACGL</a>) with a Outperform and raises the price target from $108 to $112.

RBC Capital Maintains Outperform on Arch Capital Group, Raises Price Target to $112

Acquisition Enhances Middle Market Offerings Within Arch Insurance
Arch Insurance North America (Arch Insurance), part of Arch Capital Group Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NASDAQ">ACGL</a>) (Arch), today announced it has closed the acquisition of the U.S. MidCorp and Entertainment insurance businesses from Allianz originally <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Finsurance.archgroup.com%2Farch-insurance-north-america-to-acquire-allianzs-u-s-midcorp-and-entertainment-insurance-businesses%2F&amp;esheet=54102973&amp;newsitemid=20240801849807&amp;lan=en-US&amp;anchor=announced&amp;index=1&amp;md5=d699fc0e5ee1afb36bffee7260c5a244">announced</a> on April 5. Nearly 500 former Allianz MidCorp and Entertainment employees have joined Arch and will provide continuity to clients and brokers as Arch Insurance focuses on growing its middle market offerings.

Arch Insurance North America Acquires Allianz's U.S. MidCorp And Entertainment Insurance Businesses; No Terms Disclosed

7 analysts have shared their evaluations of Arch Capital Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACGL#NASDAQ">ACGL</a>) during the recent three months, expressing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts have recently evaluated Arch Capital Group and provided 12-month price targets. The average target is $112.86, accompanied by a high estimate of $120.00 and a low estimate of $104.00. Witnessing a positive shift, the current average has risen by 5.34% from the previous average price target of $107.14.
<img src="https://www.benzinga.com/files/images/story/2024/1722459669_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
The perception of Arch Capital Group by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Matthew Carletti</td>
<td>JMP Securities</td>
<td>Raises</td>
<td>Market Outperform</td>
<td>$115.00</td>
<td>$110.00</td>
</tr>
<tr>
<td>David Motemaden</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>In-Line</td>
<td>$104.00</td>
<td>$100.00</td>
</tr>
<tr>
<td>Jimmy Bhullar</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$108.00</td>
<td>$106.00</td>
</tr>
<tr>
<td>Jay Cohen</td>
<td>B of A Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$118.00</td>
<td>$119.00</td>
</tr>
<tr>
<td>Jimmy Bhullar</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$106.00</td>
<td>$96.00</td>
</tr>
<tr>
<td>Cave Montazeri</td>
<td>Deutsche Bank</td>
<td>Raises</td>
<td>Buy</td>
<td>$120.00</td>
<td>$110.00</td>
</tr>
<tr>
<td>Jay Cohen</td>
<td>B of A Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$119.00</td>
<td>$109.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Arch Capital Group. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Arch Capital Group compared to the broader market.</li>
<li>Price Targets: Analysts predict movements in price targets, offering estimates for Arch Capital Group's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
To gain a panoramic view of Arch Capital Group's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/ACGL/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Arch Capital Group analyst ratings.</a>
<h2>Unveiling the Story Behind Arch Capital Group</h2>
Arch Capital Group Ltd is a Bermuda company which writes insurance and reinsurance with operations in Bermuda, the United States, Canada, Europe, Australia and United Kingdom. The business operates through three underwriting segments: insurance, reinsurance, and mortgage two operating segments: corporate and other. The insurance segment provides specialty risk solutions to client across a variety of industries. The reinsurance segment provides reinsurance services which cover property catastrophe, property, liability, marine, aviation and space, trade credit and surety, agriculture, accident, life and health, and political risk. The mortgage business provides risk management and risk financing products to the mortgage insurance sectors through platforms in the U.S., Europe and Bermuda.
<h3>Arch Capital Group: Delving into Financials</h3>
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Arch Capital Group's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 24.37%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.
Net Margin: Arch Capital Group's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 28.62%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Arch Capital Group's ROE stands out, surpassing industry averages. With an impressive ROE of 6.16%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Arch Capital Group's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.82% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Arch Capital Group's debt-to-equity ratio is below the industry average. With a ratio of 0.15, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<h2>The Basics of Analyst Ratings</h2>
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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