Arch Capital Stock: Analyst Estimates & Ratings

Arch Capital Group Ltd. (ACGL), a Bermuda-based insurance provider, has underperformed the broader market over the past year. The company's shares have only gained 9.4%, compared to the S&P 500 Index's 20.4% increase. Looking ahead to 2026, ACGL stock is projected to rise 3.4%, while the S&P 500 is expected to grow 13.7% year-to-date.

ACGL's underperformance is attributed to slowing top-line growth, margin pressure, and issues related to catastrophes. Despite solid underlying profitability, the company has faced challenges in maintaining pricing power and dealing with increased market competition. On July 28, ACGL shares jumped 2.5% following its Q2 results, with adjusted earnings per share (EPS) of $2.56 exceeding analyst expectations of $2.49.

For the current fiscal year, analysts forecast ACGL's EPS to decline 4% to $9.45 on a diluted basis. In terms of analyst sentiment, the consensus rating for ACGL stock is a "Moderate Buy," based on 10 "Strong Buy" ratings, one "Moderate Buy," 10 "Holds," and two "Strong Sells." Among the 23 analysts covering ACGL stock, the mean price target is $111.31, representing a 12.2% premium to the current stock price.

This price target suggests a potential upside of 18.9% from the current level. JPMorgan Chase & Co. (JPM) analyst Pablo Singzon recently maintained a "Neutral" rating on ACGL stock and raised the price target to $118, reflecting a potential upside of 18.9%.