Arch Capital Group: A Strong Buy - Analyst Blog
11 Mars 2013 - 5:38PM
Zacks
On Mar 8, Zacks Investment Research upgraded Arch
Capital Group Ltd. (ACGL) to a Zacks Rank #1 (Strong
Buy).
Why the Upgrade?
Arch Capital has been witnessing rising earnings estimates on the
back of strong fourth-quarter 2012 results. Moreover, this property
and casualty insurer delivered positive earnings surprises in 3 of
the last 4 quarters with an average beat of 24.2%. The long-term
expected earnings growth rate for this stock is 9.4%.
Additionally, to foray into the U.S. Mortgage Insurance market,
Arch U.S. MI, the U.S. subsidiary of Arch Capital, announced that
it will acquire CMG Mortgage Insurance Company (CMG MI) from PMI
Mortgage Insurance Company for $300 million.
Thus, the deal will not only entail Arch Capital to penetrate
the U.S. mortgage insurance market but also will help it obtain
mortgage insurance license throughout the nation, thereby
diversifying its business portfolio and providing a global
operating platform. Management expects the deal to complement its
objective to expand and capitalize on new specialty lines of
business.
Moreover, with excess capital in hand, the company expects to
continue increasing shareholders value.
Arch Capital reported its fourth-quarter results on Feb 11.
Non-GAAP loss per share came in at 18 cents, better than the Zack
Consensus Estimate of a loss of 49 cents.
Top line improved 14% year over year to $855 million, driven by
strong improvement in net premiums earned (up 15.7% year over).
The Zacks Consensus Estimate for 2013 increased 4.0% to $3.09 per
share as 6 of 14 estimates were revised higher over the last 30
days. The estimate also represents a year-over-year increase of
21.7%.
Other Stocks to Consider
Other property and casualty insurers like Cincinnati
Financial Corp. (CINF), XL Group plc (XL)
and Navigators Group Inc. (NAVG), carry a Zacks
Rank #1 (Strong Buy) and are worth noting.
ARCH CAP GP LTD (ACGL): Free Stock Analysis Report
CINCINNATI FINL (CINF): Free Stock Analysis Report
NAVIGATORS GRP (NAVG): Free Stock Analysis Report
XL GROUP PLC (XL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Arch Capital (NASDAQ:ACGL)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Arch Capital (NASDAQ:ACGL)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024