New Lifetime High Today: Arch Capital Group (ACGL)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Arch Capital Group as such a stock due to the following factors:
- ACGL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.7 million.
- ACGL has traded 5,940 shares today.
- ACGL is trading at a new lifetime high.
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More details on ACGL:
Arch Capital Group Ltd., through its subsidiaries, provides property, casualty, and mortgage insurance and reinsurance products worldwide. ACGL has a PE ratio of 10.1. Currently there are 5 analysts that rate Arch Capital Group a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Arch Capital Group has been 456,800 shares per day over the past 30 days. Arch Capital Group has a market cap of $7.7 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.79 and a short float of 0.7% with 1.51 days to cover. Shares are up 4% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Arch Capital Group as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues rose by 10.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ACGL's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 33.2% when compared to the same quarter one year prior, rising from $161.49 million to $215.16 million.
- Net operating cash flow has slightly increased to $237.47 million or 6.09% when compared to the same quarter last year. In addition, ARCH CAPITAL GROUP LTD has also modestly surpassed the industry average cash flow growth rate of 2.78%.
- You can view the full Arch Capital Group Ratings Report.
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