Arch Capital Group Ltd. (ACGL) Buy or Sell Stock Guide

Last updated: May 12, '19

Are you looking for the analysis of Arch Capital Group Ltd. (ACGL) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 5 reasons to buy and 3 reasons to sell ACGL stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about ACGL stock:

  • Is ACGL a buy or a sell?
  • Should I sell or hold ACGL stock today?
  • Is ACGL a good buy / investment?
  • What are ACGL analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy ACGL stock:

1. ACGL profitability is improving. The YoY profit margin change was 3.08percentage points. See ACGL profitability chart.

2. ACGL forward P/E ratio is 12.26, and it’s low compared to its industry peers’ P/E ratios. See ACGL forward P/E ratio chart.

3. ACGL Price/Sales ratio is 2.49, and it’s low compared to its industry peers’ P/S ratios. See ACGL forward Price/Sales ratio chart.

4. ACGL PEG ratio (P/E adjusted for growth) is 0.74, and it’s low compared to its industry peers’ PEG ratios. See ACGL PEG chart.

5. ACGL average analyst rating is Buy. See ACGL analyst rating chart.

Now that you understand the bull case, let’s look at the reasons to sell ACGL stock (i.e., the bear case):

1. ACGL stock price ($33.96) is close to the 52-week high ($34.18). Perhaps now is a good time to sell? See ACGL price chart.

2. ACGL quarterly revenue growth was -4.90%, lower than the industry and sector average revenue growth (2.31% and 5.69%, respectively). See ACGL revenue growth chart.

3. ACGL short interest (days to cover the shorts) ratio is 3.98. The stock garners more short interest than the average industry, sector or S&P 500 stock. See ACGL short interest ratio chart.

Now let's look at the key statistics for ACGL:

Metrics ACGL
Price $34.42
Average Price Target / Upside $34.08 / -0.99%
Average Analyst Rating Buy
Industry Insurance - Diversified
Sector Financial Services
Number of Employees 3,642
Market Cap $13.68B
Forward P/E Ratio 12.02
Price/Book Ratio 2.31
PEG 0.7
Revenue (TTM) $5.89B
YoY Quarterly Revenue Growth 34.2%
Profit Margin 17.93%

What are your thoughts on ACGL?

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