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Arch Capital Group Ltd. (ACGL), headquartered in Pembroke, Bermuda, provides financial services. With a market cap of $33.5 billion, the company offers life, health, and property insurance and reinsurance products, as well as mortgage insurance products. The insurance giant is expected to announce its fiscal second-quarter earnings for 2025 after the market closes on Tuesday, Jul. 29.
Ahead of the event, analysts expect ACGL to report a profit of $2.34 per share on a diluted basis, down 9% from $2.57 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect ACGL to report EPS of $7.91, down 14.8% from $9.28 in fiscal 2024. However, its EPS is expected to rise 20% year over year to $9.49 in fiscal 2026.
ACGL stock has underperformed the S&P 500 Index’s ($SPX) 11.7% gains over the past 52 weeks, with shares down 8.2% during this period. Similarly, it underperformed the Financial Select Sector SPDR Fund’s (XLF) 26% gains over the same time frame.
On Apr. 29, ACGL shares closed up more than 1% after reporting its Q1 results. Its adjusted EPS of $1.54 beat Wall Street expectations of $1.37. The company’s net premiums written stood at $4.5 billion, up 10.5% year over year.
Analysts’ consensus opinion on ACGL stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 16 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy,” five give a “Hold,” and one recommends a “Strong Sell.” ACGL’s average analyst price target is $110.53, indicating a potential upside of 22.5% from the current levels.
