Pembroke, Bermuda-based Arch Capital Group Ltd. (ACGL) provides insurance, reinsurance, and mortgage insurance products in the United States and globally. With a market cap of $34 billion, the company operates through Insurance, Reinsurance, Mortgage, and Corporate segments.

ACGL has lagged behind the broader market over the past year, but it has outperformed in 2025. ACGL’s stock prices have declined 4.4% over the past 52 weeks and have gained 1.3% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 11.5% gains over the past year and a marginal uptick in 2025.

Narrowing the focus, ACGL has also underperformed the industry-focused iShares U.S. Insurance ETF’s (IAK) 17.8% surge over the past 52 weeks and its 7.2% uptick on a YTD basis.

ACGL shares declined 1.9% after the release of its mixed Q1 earnings on Apr. 29. The company’s total revenues increased 18.6% year-over-year to $4.7 billion. However, despite this robust year-over-year rise, it failed to surpass the Wall Street estimates for revenue. The company’s net cash provided by operating activities fell 6.8% year-over-year to $1.5 billion and painted a grim picture of its operations. Moreover, its adjusted net income decreased 37.4% from the year-ago quarter to $587 million. ACGL’s adjusted EPS also declined 37.1% from the prior year’s quarter to $1.54.

For the current fiscal year, ending in December, analysts expect ACGL to report a 14.9% year-over-year decrease in adjusted EPS to $7.90. However, the company has an impressive earnings surprise history. It has surpassed the Street’s bottom-line estimates each time over the past four quarters. Its adjusted EPS of $1.54 reported in Q1 surpassed the consensus estimates by 12.4%.

Meanwhile, ACGL has a consensus “Moderate Buy” rating overall. Of the 17 analysts covering the stock, opinions include 10 “Strong Buys,” two “Moderate Buys,” four “Holds,” and one “Strong Sell.”

The configuration has remained unchanged in recent months.

On May 6, Keefe, Bruyette & Woods analyst Meyer Shields maintained an "Outperform" rating on Arch Capital stock and raised the price target from $104 to $113.

As of writing, ACGL's mean price target of $110.81 implies an impressive 18.5% premium to current price levels, while the Street-high target of $125 suggests a notable 33.6% upside potential.