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ACGL · NASDAQ · STOCK

Arch Capital Group (ACGL) Stock Analysis

Financial Services Updated August 24, 2026
$101.13
52W $82.45 – $107.09
65/100
$34.73B
7.7
0.29
AI Committee Verdict
Buy
65/100
Conviction: High · 83% agreement · 6 analysts
+0.3%
-5.3%
0.05:1
High
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.

Is ACGL Bullish or Bearish?

Bullish. Innellis AI committee rates Arch Capital Group (ACGL) Buy with a composite score of 65/100 , based on 6 analysts with 83% agreement. Last updated August 24, 2026.

What Would Change This View

Upgrade to Strong Buy
Requires a committee score of 75.0 — +9.61 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Watch
Requires the score to fall below 55.0 — -10.39 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The primary driver is low leverage (debt-to-equity 0.11) -- balance sheet can absorb a shock. The main limiting factor is macd histogram negative -- bearish momentum. The committee is constructive but not yet at full conviction.

Bull & Bear Case

Bull Case
  • P/E of 7.1 is inexpensive for the broad market — Value
  • Price-to-book of 1.4x is a discount to asset value — Value
  • ROE of 19.5% shows genuine earnings power backing the valuation — Value
  • EPS growing 31.9% YoY — Growth
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
  • Low leverage (debt-to-equity 0.11) -- balance sheet can absorb a shock — Risk
Bear Case
  • Revenue declining -0.8% YoY -- this is not a growth story right now — Growth
  • MACD histogram negative -- bearish momentum — Technical
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 24, 2026
Overall Committee Score
65/100
Agreement
83%
Analysts
6
Conviction
High
Sector Rank
Top 24%
of 211 Financial Services peers
Value Analyst bullish
76 / 100 · High confidence
Classic value case: cheap on multiples with earnings power to back it up
+ P/E of 7.1 is inexpensive for the broad market
Growth Analyst bullish
62 / 100 · High confidence
Strong, accelerating growth with consistent execution
+ EPS growing 31.9% YoY
− Revenue declining -0.8% YoY -- this is not a growth story right now
Technical Analyst neutral
48 / 100 · High confidence
Mixed or range-bound price action
− MACD histogram negative -- bearish momentum
Risk Analyst bullish
80 / 100 · Low confidence
Risk profile is manageable -- leverage, volatility, and event exposure all look contained
+ Low leverage (debt-to-equity 0.11) -- balance sheet can absorb a shock
Macro Analyst bullish
65 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst bullish
61 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 3069.37)
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Investment Thesis Evolution

Committee score moved marginally from 65.4 to 65.4.

Comparing 2026-08-23 to 2026-08-24 (1 day apart).

Technical Analysis

RSI (14)
53.3
Neutral
MACD Histogram
-0.115
Bearish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Hh Hl
Support
$94.17
Resistance
$99.66
Bollinger %B
0.45
Inside Bands
Price vs Moving Averages
EMA 9
$98.91 Above
EMA 21
$99.25 Above
EMA 50
$98.56 Above
EMA 200
$95.87 Above

Fundamental Analysis

Valuation
100
Growth
67
Profitability
80
Financial Health
50
Cash Flow
70
Valuation
P/E Ratio 7.7×
P/B Ratio 1.42×
PEG Ratio 0.25
Dividend Yield 0.00%
52W High $107.09
52W Low $82.45
Quality & Growth
ROE 1817.3%
ROA 656.0%
Gross Margin 4618.9%
Operating Margin 2737.9%
Revenue Growth YoY
Debt / Equity 0.18
AI Fundamental Assessment
P/E ratio of 7.7 (inexpensive relative to a 15-40x range); Price-to-book of 1.4x; PEG ratio of 0.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 18.2%; Return on assets of 6.6%; Net margin of 24.4%; Gross margin of 46.2%; Current ratio of 0.67 (tight short-term liquidity); Debt-to-equity of 0.18; Free cash flow per share is positive (17.64); Most recent quarter beat estimates by 3.1%; EPS growth accelerating (-16.1% -> +2.4% QoQ); Average YoY EPS growth of -0.8%; Analyst estimates falling over recent quarters
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