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Arch Capital Group Stock Rallies on High Demand and Strong Fundamentals

By:
Lucas Downey
Published: Mar 2, 2023, 20:39 GMT+00:00

Arch Capital Group Ltd. (ACGL) shares have jumped 12% in 2023. The insurer recently made new 52-week highs in a tough tape.

NASDAQ, FX Empire

In this article:

One big reason for the healthy ramp in price is steady accumulation in the stock.

Arch Capital Stock Sees Big Money Demand

So, what’s Big Money? Said simply, that’s when a stock climbs in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next outperforming stock. Arch Capital is both attractive on a fundamental basis and momentum basis.

This could set up well for the stock going forward. Let’s check in on the demand picture for the stock.

Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

Since October, the shares attracted 11 unusual buy signals. Demand for the stock has been high. Those repeated green bars could mean more upside is ahead.

Now, let’s check out the fundamental action grabbing my attention:

Arch Capital Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, ACGL has been growing sales and EPS at a healthy clip. Take a look:

  • 1-year sales growth rate (+6.9%)
  • 3-year EPS growth rate (+5.4%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, ACGL has been a top-rated stock multiple times at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

Let’s wrap up.

Arch Capital Price Prediction

The Arch Capital rally could have further to go. Healthy buying in the shares is signaling to take notice. Shares could be positioned for further upside.

Please note, shares could be extended at these levels given the large accumulation signals.

Disclosure: the author holds no positions in ACGL at the time of publication.

Learn more about the MAPsignals process here.

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https://mapsignals.com/contact/

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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