Arch Capital Group Ltd. (NASDAQ:ACGL) currently trades at a forward price to earnings ratio of 10.07, below the sector median of 10.55 and 26.05 of the S&P 500.
The stock also ranks among our Most Undervalued High Quality Stocks to Buy Now
Recently, on May 5, Keefe Bruyette lowered the firm’s price target on the stock from $105 to $102, while keeping a Market Perform rating on the shares. On the same day, Mizuho Securities also reiterated a Hold rating on the shares and lowered the price target from $102 to $101. Analyst at Keefe Bruyette noted that the near-term upside for the company appears to be limited due to a number of factors, including sustained property catastrophe reinsurance pricing softness, slowing primary insurance premium growth, and declining mortgage segment profitability.
The company also released its fiscal Q1 2026 earnings recently, on April 28. Arch Capital Group Ltd. (NASDAQ:ACGL) posted Q1 2026 net premiums written of $4.35 billion, down 3.7% year-over-year. On the bright side, the GAAP EPS of $2.88 topped the consensus by $0.32.