Track market-moving stories before they get noisy

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is CBIZ (CBZ - Free Report) . CBZ is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.83, which compares to its industry's average of 14.87. CBZ's Forward P/E has been as high as 30.87 and as low as 13.83, with a median of 20.19, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CBZ has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.3.

These figures are just a handful of the metrics value investors tend to look at, but they help show that CBIZ is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CBZ feels like a great value stock at the moment.

On May 6, 2026, GatePass Capital, LLC disclosed a new position in CBIZ (CBZ 0.76%), acquiring 98,163 shares in an estimated $3.46 million trade based on the quarterly average price.

What happenedAccording to a Securities and Exchange Commission (SEC) filing dated May 6, 2026, GatePass Capital, LLC initiated a new position in CBIZ, purchasing 98,163 shares. The estimated transaction value was approximately $3.46 million, calculated using the average unadjusted closing price for the first quarter of 2026. The quarter-end value of the position was $2.64 million, reflecting both trading activity and share price movement.

What else to knowThis was a new position for GatePass Capital, LLC, representing 1.23% of its reportable assets under management as of March 31, 2026.

Top five holdings after the filing:

CINF: $15.30 million (7.4% of AUM)SHV: $7.86 million (3.8% of AUM)SPY: $7.59 million (3.7% of AUM)MINT: $7.38 million (3.6% of AUM)STEW: $7.36 million (3.6% of AUM)As of May 5, 2026, CBIZ shares were priced at $31.30, down 56.5% over the past year, and underperforming the S&P 500 by 85.0 percentage points.

Company overviewMetricValueRevenue (TTM)$2.77 billionNet income (TTM)$154.28 millionPrice (as of market close May 5, 2026)$31.30One-year price change(56.5%)Company snapshotOffers accounting, tax, financial advisory, valuation, risk consulting, employee benefits, payroll, insurance, and IT consulting services across three primary business segments.Generates revenue through a diversified service model, providing recurring and project-based solutions to businesses and individuals in financial, insurance, and advisory domains.Serves small and medium-sized businesses, individuals, governmental entities, and not-for-profit organizations in the United States and Canada.CBIZ is a leading provider of professional services, leveraging a multi-segment platform to deliver financial, insurance, and advisory solutions. Its scale and breadth of offerings allow it to address a wide range of client needs, supporting organizations through complex regulatory and operational environments. CBIZ's diversified client base and recurring revenue streams provide resilience and growth opportunities within the specialty business services sector.

What this transaction means for investorsGatePass Capital, an Ohio-based investment advisor, recently disclosed the purchase of $2.6 million worth of CBIZ stock (CBZ) during the first quarter (the three months ending on March 31, 2026). Here are some key takeaways for investors.

To begin, CBIZ stock has struggled recently. Shares have declined in value by around 55% over the past year. The company delivered a disappointing first-quarter earnings report. Revenue came in below consensus analyst expectations, and management lowered guidance, citing demand uncertainty.

All that said, some investors may be intrigued by the stock’s newfound affordability. Shares now trade at a price-to-sales (P/S) ratio of around 0.7x. That’s far below the stock’s 10-year average P/S ratio of 1.5x, and it’s close to the 10-year low of 0.6x, recorded earlier this year.

In summary, CBIZ stock has come under pressure due to disappointing results and lowered guidance. However, value-minded investors may want to give the stock a closer look due to its low valuation.

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Investors in CBIZ, Inc. (CBZ - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jul 17, 2026 $60 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for CBIZ shares, but what is the fundamental picture for the company? Currently, CBIZ is a Zacks Rank #3 (Hold) in the Consulting Services industry that ranks in the Bottom 23% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimate for the current quarter, while two analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 80 cents per share to 75 cents in that period.

Given the way analysts feel about CBIZ right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

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Draganfly (NASDAQ: DPRO - Get Free Report) and ASGN (NYSE: ASGN - Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations. Analyst Ratings This is a breakdown of

RICHMOND, Va.--(BUSINESS WIRE)---- $asgn #AI--Apex Systems, a leading global technology solutions firm and one of seven ASGN brands that will be unifying under the new Everforth brand (NYSE: ASGN), today announced that it has been named a 2026 Infor Partner Award Network (IPN) winner for Americas Source and Co-Sell Partner of the Year. This award recognizes Apex's achievements in delivering value and innovation to customers through its partnership with Infor. IPN Awards highlight outstanding partners for the.

RICHMOND, Va.--(BUSINESS WIRE)---- $asgn #earnings--ASGN Incorporated (NYSE: ASGN) announced today that it will be changing its legal name to Everforth, Inc., effective April 24, 2026. That same day, the Company will cease trading under the New York Stock Exchange ticker symbol “ASGN” and begin trading under “EFOR”. These changes are part of the Company's transformation announced on November 20, 2025, and reflect its commitment to a unified brand identity. There is no action required by the Company's stockholders.

RICHMOND, Va.--(BUSINESS WIRE)---- $asgn #EFOR--ASGN Incorporated (NYSE: ASGN), a leading provider of IT solutions to the commercial and government sectors, soon to be renamed Everforth, Inc., reported financial results for the quarter ended March 31, 2026. Highlights First Quarter 2026 Revenues were $968.3 million Net income was $5.5 million Adjusted EBITDA (a non-GAAP measure) was $83.6 million (8.6 percent of revenues) Operating cash flows were $18.5 million and Free Cash Flow (a non-GAAP measure) was $9.1.

ASGN Incorporated (ASGN) Q1 2026 Earnings Call Transcript

SAN DIEGO, April 23, 2026 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP is investigating potential claims on behalf of investors of ASGN Incorporated (NYSE: ASGN). The investigation focuses on ASGN’s executive officers and whether investor losses may be recovered under federal securities laws.

What if I purchased ASGN securities?
If you purchased ASGN securities and suffered losses on your investment, join our investigation now: Click here to join the investigation.
Or for more information, contact Jim Baker at [email protected] or (619) 814-4471.
There is no cost or obligation to you.

Background of the investigation
On April 22, 2026, ASGN reported its first quarter 2026 financial results, which reflected lower-than-expected earnings and declining margins. Following this disclosure, the Company’s stock price declined significantly.

In light of this disclosure, Johnson Fistel is investigating whether ASGN complied with the federal securities laws, including whether the Company’s prior disclosures regarding its business operations and financial outlook were adequate. If you suffered losses from your investment in ASGN stock, contact Johnson Fistel.

About Johnson Fistel, PLLP | Securities Fraud & Investor Rights
Johnson Fistel, PLLP is a nationally recognized shareholder-rights law firm with offices in California, New York, Georgia, Idaho, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits and also assists foreign investors who purchased shares on U.S. exchanges. To learn more, visit www.johnsonfistel.com.

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ASGN Inc. (NYSE:ASGN) shares jumped on Friday as traders reassessed the fallout from a recent earnings miss and soft guidance amid improving tech-led risk appetite.

ASGN will change its name to Everforth, Inc. on April 24, 2026, and begin trading under the ticker "EFOR."

The move reflects its rebranding strategy, with no action required from shareholders and no change to its NYSE listing or CUSIP.

Post-Earnings Selloff And MissThe stock had previously dropped more than 25% after reporting first-quarter EPS of 69 cents, missing the 98-cent consensus estimate, and revenue of $968.3 million, slightly below expectations.

ASGN expects second-quarter revenue of $970 million to $1 billion, with net income of $8.0 million to $13.7 million and adjusted EBITDA of $85 million to $95 million, assuming stable end markets.

ASGN Technical Outlook: Oversold And Below Key AveragesThe company is currently trading within its 52-week range, having a low of $19.31 and a high of $60.75. The stock is trading significantly below its 20-day simple moving average (SMA) of $37.66 and its 50-day SMA of $39.20, suggesting a bearish short-term trend.

Additionally, the stock is trading 46.5% below its 100-day SMA of $44.10, suggesting continued weakness in the intermediate term.

The relative strength index (RSI) is at 18.14, which is considered oversold, suggesting the stock may be under pressure but could also signal a potential rebound.

Key Resistance: $25.00 — This level may act as a barrier for upward movement. Key Support: $20.00 — This level could provide a floor for the stock if it declines further. ASGN Earnings Preview And Analyst ExpectationsASGN is slated to provide its next financial update on July 22, 2026 (estimated).

EPS Estimate: $1.28 (Up from $1.17) Revenue Estimate: $1.02 billion (Flat compared to $1.02 billion) Valuation: P/E of 8.7x (Indicates value opportunity) Analyst Consensus & Recent Actions: The stock has a Hold rating and an average price target of $34.40. Recent analyst moves include:

UBS: Sell (Lowers Target to $35.00) (April 23) Truist Securities: Downgraded to Hold (Lowers Target to $33.00) (April 23) Wells Fargo: Equal-Weight (Lowers Target to $33.00) (April 23) ASGN Shares Rise In Premarket TradingASGN Stock Price Activity: ASGN shares were up 2.92% at $20.10 at last check on Friday, according to Benzinga Pro data.

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AAON, Inc. is downgraded to a soft Sell due to extreme valuation despite strong operational performance and data center-driven growth. Q1 revenue surged 54.3% to $496.9M, with backlog doubling year-over-year to $2.13B, supporting management's 40–45% revenue growth guidance for 2026. All segments, especially BASX, delivered robust top-line growth, but rising raw material costs compressed gross margins from 26.8% to 25.1%.

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.

The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.

Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.

Aaon (AAON - Free Report) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.

A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. AAON is quite a good fit in this regard, gaining 30.1% over this period.

However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 42.5% over the past four weeks ensures that the trend is still in place for the stock of this maker of air conditioning and heating equipment.

Moreover, AAON is currently trading at 82.4% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.

Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.

So, the price trend in AAON may not reverse anytime soon.

In addition to AAON, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.

However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.

Click here to sign up for a free trial to the Research Wizard today.

Investors might want to bet on Aaon (AAON - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this maker of air conditioning and heating equipment, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Aaon, as there has been strong agreement among the covering analysts in raising estimates.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsThe earnings estimate of $0.50 per share for the current quarter represents a change of +127.3% from the number reported a year ago.

Over the last 30 days, the Zacks Consensus Estimate for Aaon has increased 5.59% because one estimate has moved higher while one has gone lower.

Current-Year Estimate RevisionsFor the full year, the company is expected to earn $2.23 per share, representing a year-over-year change of +65.2%.

The revisions trend for the current year also appears quite promising for Aaon, with three estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 11.48%.

Favorable Zacks RankOur research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineInvestors have been betting on Aaon because of its solid estimate revisions, as evident from the stock's 53% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.

Key Takeaways Comfort Systems backlog surged 80.8% year over year to a record $12.45B as of Q1 2026.FIX Q1 revenues jumped 56.8% while EPS climbed 121.3% on strong tech demand trends.Comfort Systems cited robust bookings and expanding modular capacity as growth drivers. Comfort Systems USA, Inc. (FIX - Free Report) entered 2026 with extraordinary momentum, but investors are now asking whether its record-breaking backlog can continue fueling its rapid expansion. After posting another stellar quarter, the mechanical and electrical contracting leader ended the first quarter of 2026 with backlog reaching an all-time high of $12.45 billion, up 80.8% year over year from $6.89 billion.

The surge reflects persistent demand across advanced technology and industrial markets, especially data center construction. Management noted that technology-related work represented more than half of quarterly revenues, while industrial projects accounted for roughly 75% of overall business activity. The company also reported exceptionally strong bookings during the first quarter of 2026, suggesting demand remains robust despite broader macroeconomic uncertainty. Importantly, Comfort Systems continues to convert backlog into profitable growth at an impressive pace. First-quarter revenues jumped 56.8% year over year to $2.87 billion, while EPS was up 121.3% to $10.51. Margin expansion has also become a defining strength, supported by disciplined execution, favorable project mix and growing modular construction capabilities.

Still, sustaining this momentum may not be easy. FIX faces tougher year-over-year comparisons in the second half of 2026, while labor availability, project timing and customer spending patterns remain key variables. In addition, an elevated backlog does not always guarantee flawless revenue conversion in large-scale construction markets.

Even so, Comfort Systems appears well-positioned. With strong pipelines, expanding modular capacity and durable demand from hyperscale technology customers, the company’s massive backlog could remain a powerful driver of growth and profitability for several quarters ahead.

Comfort Systems, AAON & Carrier Global: Backlog Wars Heat UpComfort Systems, alongside its close peers, AAON, Inc. (AAON - Free Report) and Carrier Global Corporation (CARR - Free Report) , is benefiting from strong HVAC and data center infrastructure demand, though each company is leveraging different growth drivers.

AAON capitalizes on the demand for energy-efficient HVAC systems and customized cooling solutions increasingly required in mission-critical facilities such as data centers. Its focus on high-performance equipment and healthy order trends supports steady backlog growth and pricing power.

On the other hand, Carrier Global offers the broadest global platform among the three, benefiting from commercial HVAC demand, aftermarket services and energy-efficiency upgrades. While its backlog profile is less construction-driven than Comfort Systems', Carrier Global gains from recurring service revenues and long-term sustainability trends, providing more balanced exposure across economic cycles.

FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have surged 95.6% year to date, significantly outperforming the Zacks Building Products - Air Conditioner and Heating industry, the broader Construction sector and the S&P 500 Index.

Image Source: Zacks Investment Research

FIX stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 39.8, as the trend lines suggest below.

Image Source: Zacks Investment Research

Earnings Estimate Trend Favors FIXFIX’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $42.74 and $50.89 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 48% and 19.1%, respectively.

Image Source: Zacks Investment Research

Comfort Systems currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.

The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.

Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.

Aaon (AAON - Free Report) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.

A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. AAON is quite a good fit in this regard, gaining 54% over this period.

However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 52.5% over the past four weeks ensures that the trend is still in place for the stock of this maker of air conditioning and heating equipment.

Moreover, AAON is currently trading at 92.3% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.

Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.

So, the price trend in AAON may not reverse anytime soon.

In addition to AAON, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.

However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.

Click here to sign up for a free trial to the Research Wizard today.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Aaon (AAON - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Aaon currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if AAON is a promising momentum pick, let's examine some Momentum Style elements to see if this maker of air conditioning and heating equipment holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For AAON, shares are up 4.16% over the past week while the Zacks Building Products - Air Conditioner and Heating industry is up 2.29% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 50.88% compares favorably with the industry's 0.47% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Aaon have risen 53.5%, and are up 47.4% in the last year. In comparison, the S&P 500 has only moved 10.8% and 30.05%, respectively.

Investors should also pay attention to AAON's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. AAON is currently averaging 1,504,652 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with AAON.

Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost AAON's consensus estimate, increasing from $2.02 to $2.23 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that AAON is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Aaon on your short list.

AAON, Inc. (AAON) Presents at 46th Annual William Blair Growth Stock Conference Transcript

On June 02, 2026, AAON Inc (AAON) shares rose 3.4% to $143.50. The stock has experienced significant price fluctuations over the past year, with a 52-week range

Key Takeaways APPS is one of five stocks highlighted for recent price strength after a 117.8% four-week surge.VPG shares jumped 104.4% in four weeks, backed by a 100% expected earnings growth rate. AAON climbed 50.8% in four weeks. It has an expected earnings growth rate of 65.2% for the current year. Last month, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — rallied 3%, 5% and 8%, respectively. Currently, all three major stock indexes are trading at their all-time intraday and closing highs.

This rally was primarily driven by a solid first-quarter 2026 earnings season, continuation of artificial intelligence (AI) trade and expectations of a near-term solution to the Middle East geopolitical conflicts. 

As a result, several stocks have shown price strength. We have primarily targeted stocks that have recently been on a bull run. These stocks have a high chance of carrying the momentum forward.

Five such stocks are — Digital Turbine Inc. (APPS - Free Report) , Vishay Precision Group Inc. (VPG - Free Report) , AAON Inc. (AAON - Free Report) , Helios Technologies Inc. (HLIO - Free Report) and ASE Technology Holding Co. Ltd. (ASX - Free Report) .

If a stock is continuously witnessing an uptrend, there must be a solid reason or it would have probably crashed. So, looking at stocks capable of beating the benchmark that they have set for themselves seems rational.

However, recent price strength alone cannot create magic. Therefore, other relevant parameters are needed to create a successful investment strategy.

Here’s how you should create the screen to shortlist the current as well as the potential winners.

Screening Parameters:Percentage Change in Price (4 Weeks) greater than zero: This criterion shows that the stock has moved higher in the last four weeks.

Percentage Change Price (12 Weeks) greater than 10: This indicates that the stock has seen momentum over the last three months. This lowers the risk of choosing stocks that may have drawn attention due to the overwhelming performance of the overall market in a very short period.

Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.

Average Broker Rating 1: This indicates that brokers are also highly hopeful about the stock’s future performance.

Current Price greater than 5: The stocks must all be trading at a minimum of $5.

Current Price/ 52-Week High-Low Range more than 85%: This criterion filters stocks that are trading near their respective 52-week highs. It indicates that these are strong enough in terms of price.

Just these few criteria narrowed down the search from over 7,700 stocks to 15.

Let’s discuss five out of those 15 stocks here:

Digital Turbine offers products and solutions for mobile operators, device OEMs and third parties. APPS operates primarily in Berlin, Singapore and Sydney. APPS operates through two segments, On Device Solutions and App Growth Platform.

APPS’ products include DT Ignite, a mobile device management solution with targeted app distribution capabilities, DT IQ, a customized user experience and app discovery tool, DT Marketplace, an application and content store and DT Pay, a content management and mobile payment solution. 

The stock price of Digital Turbine has soared 117.8% over the past four weeks. The company has expected earnings growth of 50% for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 9.1% over the last seven days.

Vishay Precision Group is a designer, manufacturer and marketer of resistive foil technology products such as resistive sensors, weighing modules, and control systems for a wide variety of applications. VPG provides vertically integrated products and solutions for multiple growing markets in the areas of stress measurement, industrial weighing, and manufacturing process control. 

VPG’s product portfolio includes: Bulk Metal foil resistors and sensors, strain gages and instruments, load cells, modules and PhotoStress products. VPG also provides systems to control process weighing in food, chemical, and pharmaceutical plants, force measurement systems used to control web tension in paper mills, roller force in steel mills, and cable tension in winch controls, on-board weighing systems installed in logging and waste-handling trucks, and special scale systems used for aircraft weighing and portable truck weighing.

The stock price of Vishay Precision Group has jumped 104.4% over the past four weeks. The company has an expected earnings growth rate of 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 28.9% over the last 30 days.

AAON is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing units and coils. AAON’s products serve the new construction and replacement markets. 

AAON has successfully gained market share through its semi-custom product lines, which offer the customer value, quality, function, serviceability and efficiency. AAON operates through three segments: AAON Oklahoma, AAON Coil Products, and BASX.

The stock price of AAON has climbed 50.8% over the past four weeks. The company has an expected earnings growth rate of 65.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.5% over the last 30 days.

Helios Technologies is benefiting from sustained order momentum, expanding market reach and improving profitability. HLIO has delivered double-digit order growth for more than a year, with backlog also rising. Growth across both Hydraulics and Electronics segments is driven by infrastructure-related demand, OEM strength and recovery in select end markets. 

New product launches are broadening HLIO’s addressable markets, including newer applications such as data center thermal management. At the same time, margin recovery is gaining traction through volume leverage and operational efficiencies. HLIO’s solid cash generation and lower leverage provide flexibility to invest, pursue selective acquisitions and enhance shareholder returns.

The stock price of Helios Technologies has surged 21.9% over the past four weeks. The company has an expected earnings growth rate of 12.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.5% over the last 30 days.

ASE Technology is a provider of semiconductor manufacturing services in assembly and testing. ASX operates through Packaging, Testing, and EMS. ASX operates primarily in Taiwan, China, South Korea, Japan, Singapore, Malaysia, Mexico, the United States and Europe. 

ASX develops and offers complete turnkey solutions covering front-end engineering testing, wafer probing and final testing as well as IC packaging, materials and electronic manufacturing services. 

The stock price of ASE Technology has rallied 16.8% over the past four weeks. It has an expected earnings growth rate of 84.2% for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 36.4% over the last 30 days.

Key Takeaways ACGL net premiums earned may rise 2.3% on rate increases, new business growth and stronger underwriting. Underwriting profitability may improve with better pricing, exposure growth & favorable catastrophe backdrop. Mortgage segment weakness and higher expenses may weigh, while share buybacks could support the bottom line. Arch Capital Group Ltd. (ACGL - Free Report) is expected to register an improvement in both top and bottom lines when it reports first-quarter 2026 results on April 28, after the closing bell.

The Zacks Consensus Estimate for ACGL’s first-quarter revenues is pegged at $4.67 billion, indicating 2.4% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $2.45 per share. The Zacks Consensus Estimate for ACGL’s first-quarter earnings has moved south 1.2% in the past 30 days. The estimate suggests a year-over-year rise of 59.1%.

What the Zacks Model Unveils for ACGLOur proven model predicts an earnings beat for Arch Capital this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.

Earnings ESP: Arch Capital has an Earnings ESP of +0.63% at present. This is because the Most Accurate Estimate of $2.46 is pegged higher than the Zacks Consensus Estimate of $2.45. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Arch Capital currently carries a Zacks Rank #3.

Factors Likely to Shape Q1 Results of ACGLRate increases, new business opportunities and growth in existing accounts, product innovation, market expansion and strong underwriting performance, combined with strategic investments, are likely to have favored net premiums earned.

The Zacks Consensus Estimate for net premiums earned is pegged at $4.2 billion. We expect net premiums earned to increase 2.3% to $4.3 billion.

The Mortgage segment is likely to have declined due to the lower gross premiums written and expenses related to tender offers of certain Bellemeade Re mortgage insurance-linked notes.

Net investment income is likely to have benefited from solid net cash flow from operating activities, which is expected to have increased the invested asset base. We expect net investment income to be $378.2 million. The Zacks Consensus Estimate for investment income is pegged at $418 million.

The top line is likely to have gained from improved earned premiums and higher net investment income.

Expenses are expected to have increased in the to-be-reported quarter due to higher losses and loss adjustment expenses, acquisition costs, other operating expenses, amortization of intangible assets, corporate expenses and interest expenses. We expect total expenses to be $3.7 billion.

Prudent underwriting, combined with better pricing and increased exposure, is likely to have improved underwriting profitability. A not-so-active catastrophe environment is expected to have added to the upside, leading to an improvement in the combined ratio. The Zacks Consensus Estimate for the combined ratio is pegged at 83, and our estimate is pinned at 83.2.

Share buybacks are likely to have added upside to the bottom line.

Other Stocks to ConsiderHere are three other P&C insurance stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

Axis Capital Holdings Limited (AXS - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $3.23 per share, indicating a year-over-year increase of 1.8%.

AXS’ earnings beat estimates in each of the last four quarters.

RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +2.97% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $11.07, indicating a year-over-year increase of 842.95%.

RNR’s earnings beat estimates in three of the last four reported quarters and missed in one.

The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $7.43, indicating a year-over-year increase of 110.4%.

ALL’s earnings beat estimates in each of the last four reported quarters.

Several large-cap stocks across tech and financials recently announced massive buyback authorizations.

The world’s largest name in creative software has seen its stock price tank. Its new $25 billion buyback plan suggests it sees significant value in shares. Meanwhile, large but under-covered financial stocks are poised to continue reducing their share counts, providing a tailwind for per-share metrics.

Get Adobe alerts:

Adobe Buyback Capacity Soars to 24% of Its Market CapitalizationThe market has battered shares of software giant Adobe NASDAQ: ADBE over the past year. Overall, the stock is down more than 40% from its 52-week high and is down more than 30% in 2026. Artificial intelligence (AI) disruption fears have been the primary driver of the stock’s decline, with the market questioning the company’s future growth. Specifically, investors see tools like “Claude Design” as competitive threats to Adobe.

Adobe Today

$218.24 -15.14 (-6.49%)

As of 06/11/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$218.09▼

$416.39P/E Ratio12.71

Price Target$297.69

Still, Adobe’s growth is holding up right now, with the company posting revenue increases of between 10% and 12% over the past several quarters. This is generally in line with growth seen in 2023 and 2024.

With shares down significantly, Adobe just announced a massive $25 billion share buyback program. The company notes this program is a “direct expression of confidence” in its cash flow generation and underscores its long-term optimism ahead. This program is equal to a whopping 24% of Adobe’s market capitalization, which has now fallen to around $103 billion.

In relation to company value, buyback programs of this size are rare, especially for huge names like Adobe.

With this, the company is making a statement, likely seeing the drawdown in its share price as overdone. Still, it's unlikely the market will move to reflect Adobe’s view quickly. The firm will need to prove the resilience of its business over time to change this.

Synchrony’s Huge Buyback Authorization Can Lower Share Count Even FurtherOn the other hand, Synchrony Financial NYSE: SYF has performed admirably. The stock has delivered a total return of about 20% since the start of 2025, essentially in line with the S&P 500 Index. The company has become a significant player in the branded credit card space. This involves working with brands to develop their own credit cards, which provide rewards to consumers.

Synchrony Financial Today

SYF

Synchrony Financial

$72.46 +2.90 (+4.16%)

As of 06/11/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$59.46▼

$88.77Dividend Yield1.66%

P/E Ratio7.49

Price Target$86.05

Notably, Synchrony’s purchase volume hit $43 billion in Q1 2026, a first-quarter record for the company. The credit quality of consumers who use Synchrony’s cards is also improving. Net charge-offs, or the percentage of the company’s loans that it will not recover, fell by nearly 100 basis points to 5.42%. This is the fourth quarter in a row of net charge-off improvement, showing that consumers continue to pay off a greater percentage of their loans.

Synchrony has also returned capital to shareholders at a prolific pace. Overall, the firm has spent $25.2 billion on buybacks and dividends since 2016. This has allowed the firm to lower its outstanding share count by nearly 60%. The company is strongly indicating that this trend will continue, recently announcing a $6.5 billion buyback program. This is equal to just under 25% of its approximately $26 billion market capitalization.

Arch Capital: Unique Insurance Provider Boosts Authorization to $3.1 BillionLast up is Arch Capital NASDAQ: ACGL. Shares have delivered a modest return near 5% since the start of 2025 and are essentially flat in 2026. The firm provides specialty insurance, reinsurance, and mortgage insurance. Specialty insurance focuses on providing coverage outside of common areas, such as life, home, or cars. Examples may include medical malpractice insurance or customized insurance for unique situations.

Arch Capital Group Today

ACGL

Arch Capital Group

$91.13 -0.18 (-0.20%)

As of 06/11/2026 04:00 PM Eastern

52-Week Range$82.44▼

$103.39P/E Ratio7.00

Price Target$106.81

Because fewer insurance companies compete in these markets, Arch can potentially generate higher margins by offering coverage. Their value proposition rests on being able to underwrite these unique risks well, capturing demand in less-competitive areas of the market.

The firm put up some impressive metrics in its latest quarter, with after-tax operating income rising by 26% to $1.1 billion. Its full-year 2025 after-tax operating income of $3.7 billion was a record high.

The company also spent $1.9 billion on buybacks in 2025, a significant figure compared to its market capitalization near $34 billion. Now, the company has added more firepower to its buyback chest, increasing its authorization to $3.1 billion. This is equal to around 9% of the company’s market capitalization. Although not as massive as that of Adobe and Synchrony, this program is still very large compared to most authorizations. It gives the firm substantial ability to continue lowering its outstanding share count, which has fallen approximately 5% over the past year.

Adobe: Analysts Remain Optimistic, But Targets Are Moving in the Wrong DirectionAmong this group, Adobe is the most interesting name going forward and may be one of the more intriguing stocks in the market. The company has long been a dominant force in creative design software. If the firm can prove that AI disruption fears are overblown, there could be significant value in Adobe stock.

Wall Street analysts have a generally positive outlook. The MarketBeat consensus price target near $340 implies more than 40% upside in shares. However, targets fell meaningfully after the company’s last earnings report. Updated targets average approximately $322.

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PEMBROKE, Bermuda--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2026 first quarter results. The results included:

Net income available to Arch common shareholders of $1.0 billion, or $2.88 per share, representing a 17.8% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $564 million, or $1.48 per share, for the 2025 first quarter. After-tax operating income available to Arch common shareholders(1) of $901 million, or $2.50 per share, representing a 15.4% annualized operating return on average common equity(1), compared to $587 million, or $1.54 per share, for the 2025 first quarter. Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $174 million. Favorable development in prior year loss reserves, net of related adjustments, of $200 million. Combined ratio excluding catastrophic activity and prior year development(1) of 82.3%, compared to 81.0% for the 2025 first quarter. Share repurchases of $783 million. Book value per common share of $66.19 at March 31, 2026, a 1.7% increase from December 31, 2025. “We started the year on an excellent note, delivering an annualized operating return on average common equity of 15.4%, which reflects our disciplined approach to underwriting and capital allocation,” said Arch CEO Nicolas Papadopoulo. “Our underwriting and cycle management expertise, supported by a strong balance sheet, continue to differentiate Arch and position us to generate best-in-class returns through the cycle.”

All earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company’s underwriting results:

(U.S. Dollars in millions)

Three Months Ended March 31,

2026

2025

% Change

Gross premiums written

$

6,425

$

6,463

(0.6)

Net premiums written

4,348

4,515

(3.7)

Net premiums earned

3,986

4,188

(4.8)

Underwriting income (1)

728

417

74.6

Underwriting Ratios

% Point Change

Loss ratio

52.4%

61.8%

(9.4)

Underwriting expense ratio (2)

29.3%

28.3%

1.0

Combined ratio

81.7%

90.1%

(8.4)

Combined ratio excluding catastrophic activity and prior year development (1)

82.3%

81.0%

1.3

The following table summarizes the Company’s consolidated financial data, including a reconciliation of net income or loss available to Arch common shareholders to after-tax operating income or loss available to Arch common shareholders and related diluted per share results (see ‘Comments on Non-GAAP Financial Measures’ for further details):

(U.S. Dollars in millions, except per share data)

Three Months Ended

March 31,

2026

2025

Net income available to Arch common shareholders

$

1,037

$

564

Net realized (gains) losses (1)

87

(3)

Equity in net (income) of investments accounted for using the equity method

(160)

(53)

Net foreign exchange (gains) losses

(21)

27

Transaction costs and other

18

10

Income tax expense (benefit) (2)

(60)

42

After-tax operating income available to Arch common shareholders

$

901

$

587

Diluted per common share results:

Net income available to Arch common shareholders

$

2.88

$

1.48

Net realized (gains) losses (1)

0.24

(0.01)

Equity in net (income) of investments accounted for using the equity method

(0.44)

(0.14)

Net foreign exchange (gains) losses

(0.06)

0.07

Transaction costs and other

0.05

0.03

Income tax expense (benefit) (2)

(0.17)

0.11

After-tax operating income available to Arch common shareholders

$

2.50

$

1.54

Weighted average common shares and common share equivalents outstanding — diluted

359.7

381.9

Beginning common shareholders’ equity

$

23,376

$

19,990

Ending common shareholders’ equity

23,358

20,715

Average common shareholders’ equity

$

23,367

$

20,353

Annualized net income return on average common equity

17.8%

11.1%

Annualized operating return on average common equity

15.4%

11.5%

Segment Information

The following section provides analysis on the Company’s 2026 first quarter performance by reportable segments. For additional details regarding the Company’s reportable segments, please refer to the Company’s Financial Supplement dated March 31, 2026. On August 1, 2024, the insurance segment completed the acquisition of the U.S. MidCorp and Entertainment insurance businesses from Allianz (MCE Acquisition). The Company’s segment information includes the use of underwriting income (loss) and a combined ratio excluding catastrophic activity and prior year development (see ‘Comments on Non-GAAP Financial Measures’ for further details).

Insurance Segment

Three Months Ended March 31,

(U.S. Dollars in millions)

2026

2025

% Change

Gross premiums written

$

2,697

$

2,645

2.0

Net premiums written

1,906

1,933

(1.4)

Net premiums earned

1,871

1,860

0.6

Other underwriting income

11

3

266.7

Underwriting income

$

66

$

(2)

3,400.0

Underwriting Ratios

% Point Change

Loss ratio

60.2%

66.0%

(5.8)

Underwriting expense ratio

36.3%

34.1%

2.2

Combined ratio

96.5%

100.1%

(3.6)

Catastrophic activity and prior year development:

Current accident year catastrophic events, net of reinsurance and reinstatement premiums

4.2%

9.5%

(5.3)

Net (favorable) adverse development in prior year loss reserves, net of related adjustments

Loss ratio impact

(0.7)%

(0.9)%

0.2

Underwriting expense ratio impact

0.3%

0.4%

(0.1)

Total impact

(0.4)%

(0.5)%

0.1

Combined ratio excluding catastrophic activity and prior year development

92.7%

91.1%

1.6

Gross premiums written by the insurance segment in the 2026 first quarter were 2.0% higher than in the 2025 first quarter, while net premiums written were 1.4% lower than in the 2025 first quarter. Adjusting for the non-renewal of certain programs related to the MCE Acquisition, net premiums written would have increased by 1.1% compared to the same quarter one year ago. Net premiums earned in the 2026 first quarter were 0.6% higher than in the 2025 first quarter and reflect changes in net premiums written over the previous five quarters.

The 2026 first quarter loss ratio reflected 4.2 points of current year catastrophic activity, compared to 9.5 points in the 2025 first quarter, primarily related to California wildfires. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 0.7 points in the 2026 first quarter, compared to 0.9 points in the 2025 first quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business.

The underwriting expense ratio was 36.3% in the 2026 first quarter, compared to 34.1% in the 2025 first quarter. In the 2025 first quarter, the impact of the MCE Acquisition lowered the underwriting expense ratio by approximately 1.9 points, primarily due to the effects of the fair value estimation of the assets acquired at closing, including the non-recognition of deferred acquisition costs. The 2026 first quarter also included higher compensation costs compared to the 2025 first quarter and transitional expenses associated with the MCE Acquisition.

Reinsurance Segment

Three Months Ended March 31,

(U.S. Dollars in millions)

2026

2025

% Change

Gross premiums written

$

3,414

$

3,494

(2.3)

Net premiums written

2,176

2,316

(6.0)

Net premiums earned

1,831

2,028

(9.7)

Other underwriting income

37

39

(5.1)

Underwriting income

$

441

$

167

164.1

Underwriting Ratios

% Point Change

Loss ratio

51.7%

66.9%

(15.2)

Underwriting expense ratio

24.2%

24.9%

(0.7)

Combined ratio

75.9%

91.8%

(15.9)

Catastrophic activity and prior year development:

Current accident year catastrophic events, net of reinsurance and reinstatement premiums

5.2%

18.3%

(13.1)

Net (favorable) adverse development in prior year loss reserves, net of related adjustments

Loss ratio impact

(8.3)%

(5.9)%

(2.4)

Underwriting expense ratio impact

0.9%

1.4%

(0.5)

Total impact

(7.4)%

(4.5)%

(2.9)

Combined ratio excluding catastrophic activity and prior year development

78.1%

78.0%

0.1

Gross premiums written by the reinsurance segment in the 2026 first quarter were 2.3% lower than in the 2025 first quarter, while net premiums written were 6.0% lower than in the 2025 first quarter. The lower level of net premiums written this quarter was primarily due to a reduction in property catastrophe business written at January 1, amplified by a lower level of reinstatement premiums relative to the 2025 first quarter, which included reinstatement premiums related to the California wildfires. Net premiums earned in the 2026 first quarter were 9.7% lower than in the 2025 first quarter and reflect changes in net premiums written over the previous five quarters.

The 2026 first quarter loss ratio reflected 5.4 points of current year catastrophic activity, compared to 21.7 points in the 2025 first quarter, primarily related to California wildfires. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 8.3 points in the 2026 first quarter, compared to 5.9 points in the 2025 first quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business.

The underwriting expense ratio was 24.2% in the 2026 first quarter, compared to 24.9% in the 2025 first quarter. The 2025 first quarter amount included a lower level of contingent commissions on ceded business, primarily due to the impact of the California wildfires.

Mortgage Segment

Three Months Ended March 31,

(U.S. Dollars in millions)

2026

2025

% Change

Gross premiums written

$

316

$

326

(3.1)

Net premiums written

266

266

—

Net premiums earned

284

300

(5.3)

Other underwriting income

11

11

—

Underwriting income

$

221

$

252

(12.3)

Underwriting Ratios

% Point Change

Loss ratio

5.3%

1.1%

4.2

Underwriting expense ratio

17.0%

15.0%

2.0

Combined ratio

22.3%

16.1%

6.2

Prior year development:

Net (favorable) adverse development in prior year loss reserves, net of related adjustments

Loss ratio impact

(19.2)%

(20.4)%

1.2

Underwriting expense ratio impact

(0.7)%

(1.4)%

0.7

Total impact

(19.9)%

(21.8)%

1.9

Combined ratio excluding prior year development

42.2%

37.9%

4.3

Gross premiums written by the mortgage segment in the 2026 first quarter were 3.1% lower than in the 2025 first quarter, driven by lower U.S. monthly premium business. Net premiums written were flat compared to the 2025 first quarter, reflecting lower cessions on U.S. primary business.

Estimated net favorable development of prior year loss reserves, before related adjustments, decreased the loss ratio by 19.2 points, compared to 20.4 points in the 2025 first quarter. Such amounts were primarily related to better than expected cure rates. The 2026 first quarter loss ratio reflected a modestly higher level of delinquencies than in the 2025 first quarter.

The underwriting expense ratio was 17.0% in the 2026 first quarter, compared to 15.0% in the 2025 first quarter. The increase was primarily due to higher gross acquisition expenses and lower ceding and profit commissions on U.S. primary business. The 2026 first quarter ratio also reflected the impact of a lower level of net premiums earned.

Corporate

The Company’s results include net investment income, net realized gains or losses (which include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, other income (loss), corporate benefit (expenses), transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains or losses, income tax items, income or loss from operating affiliates and items related to the Company’s non-cumulative preferred shares.

Investment returns were as follows:

(U.S. Dollars in millions, except per share data)

Three Months Ended

March 31,

December 31,

March 31,

2026

2025

2025

Pre-tax net investment income

$

408

$

434

$

378

Per share

$

1.13

$

1.18

$

0.99

Equity in net income of investments accounted for using the equity method

$

160

$

155

$

53

Per share

$

0.44

$

0.42

$

0.14

Pre-tax investment income yield, at amortized cost (1)

3.99%

4.22%

4.16%

Total return on investments (2)

0.10%

1.36%

2.02%

Net investment income for the 2026 first quarter, compared to the 2025 first quarter, primarily reflected growth in average invested assets, due in part to strong operating cash flows. Net realized losses were $87 million for the 2026 first quarter, compared to net realized gains of $3 million in the 2025 first quarter, and were primarily the result of financial market movements on the Company’s derivatives, equity securities and investments accounted for under the fair value option method.

Corporate expenses for the 2026 first quarter were $31 million, compared to $50 million for the 2025 first quarter. Such expenses primarily represent certain holding company costs necessary to support our worldwide operations and costs associated with operating as a publicly traded company. The decline in the 2026 first quarter primarily reflected the benefit of Bermuda qualified refundable tax credits.

Amortization of intangible assets was $30 million for the 2026 first quarter, compared to $49 million for the 2025 first quarter. Both periods reflected the amortization of intangible assets related to the MCE Acquisition.

On a pre-tax basis, net foreign exchange gains were $21 million for the 2026 first quarter, compared to net foreign exchange losses of $27 million for the 2025 first quarter. For both periods, such amounts were primarily unrealized and resulted from the effects of revaluing the Company’s net insurance liabilities required to be settled in foreign currencies at each balance sheet date. Changes in the value of available-for-sale investments held in foreign currencies due to foreign currency rate movements are reflected as a direct increase or decrease to shareholders’ equity and are not included in the consolidated statements of income.

The Company’s effective tax rate on income before income taxes (based on the Company’s annual effective tax rate) was 8.6% for the 2026 first quarter, compared to 17.4% for the 2025 first quarter. The decrease in the effective tax rate was primarily driven by tax law changes in Bermuda and the United Kingdom. The Company’s effective tax rate on pre-tax operating income available to Arch common shareholders was 14.8% for the 2026 first quarter, compared to 11.7% for the 2025 first quarter. The effective tax rate may fluctuate from period to period based upon the relative mix of income or loss reported by jurisdiction, the level of catastrophic loss activity incurred, and the varying tax rates in each jurisdiction.

Income from operating affiliates for the 2026 first quarter was $36 million, or $0.10 per share, compared to $17 million, or $0.04 per share, for the 2025 first quarter, and primarily reflects amounts related to the Company’s investment in Somers Group Holdings Ltd. and Coface SA.

Conference Call

The Company will hold a conference call for investors and analysts at 10 a.m. Eastern Time on April 29, 2026. A live webcast of this call will be available via the Investors section of the Company’s website at http://www.archgroup.com/investors. A recording of the webcast will be available in the Investors section of the Company’s website approximately two hours after the event concludes. A transcript of the webcast will also be available in the Investors section of the Company’s website approximately 24 hours after the posting of the recording. Both the recording and the transcript will be archived on the site for one year.

Please refer to the Company’s Financial Supplement dated March 31, 2026, which is available via the Investors section of the Company’s website at http://www.archgroup.com/investors. The Financial Supplement provides additional detail regarding the financial performance of the Company. From time to time, the Company posts additional financial information and presentations to its website, including information with respect to its subsidiaries. Investors and other recipients of this information are encouraged to check the Company’s website regularly for additional information regarding the Company.

Arch Capital Group Ltd., is a publicly listed Bermuda exempted company with approximately $26.9 billion in capital at March 31, 2026. Arch, which is part of the S&P 500 index, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.

Comments on Non-GAAP Financial Measures

Throughout this release, the Company presents its operations in the way it believes will be the most meaningful and useful to investors, analysts, rating agencies and others who use the Company’s financial information in evaluating the performance of the Company and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP financial measures in assessing the Company’s overall financial performance.

This presentation includes the use of “after-tax operating income or loss available to Arch common shareholders,” which is defined as net income available to Arch common shareholders, excluding net realized gains or losses (which include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses, transaction costs and other, net of income taxes and the use of annualized operating return on average common equity. The presentation of after-tax operating income available to Arch common shareholders and annualized operating return on average common equity are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to net income available to Arch common shareholders and annualized net income return on average common equity (the most directly comparable GAAP financial measures) in accordance with Regulation G is included on page 2 of this release.

The Company believes that net realized gains or losses, equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other, in any particular period are not indicative of the performance of, or trends in, the Company’s business performance. Although net realized gains or losses, equity in net income or loss of investments accounted for using the equity method and net foreign exchange gains or losses are an integral part of the Company’s operations, the decision to realize these items are independent of the insurance underwriting process and result, in large part, from general economic and financial market conditions. Furthermore, certain users of the Company’s financial information believe that, for many companies, the timing of the realization of investment gains or losses is largely opportunistic. In addition, changes in the allowance for credit losses and net impairment losses recognized in earnings on the Company’s investments represent other-than-temporary declines in expected recovery values on securities without actual realization.

The use of the equity method on certain of the Company’s investments in certain funds that invest in fixed maturity securities is driven by the ownership structure of such funds (either limited partnerships or limited liability companies). In applying the equity method, these investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of the net income or loss of the funds (which include changes in the fair value of the underlying securities in the funds). This method of accounting is different from the way the Company accounts for its other fixed maturity securities and the timing of the recognition of equity in net income or loss of investments accounted for using the equity method may differ from gains or losses in the future upon sale or maturity of such investments.

Transaction costs and other include integration, advisory, financing, legal, severance, incentive compensation and all other costs directly related to acquisitions. The Company believes that transaction costs and other, due to their non-recurring nature, are not indicative of the performance of, or trends in, the Company’s business performance.

The Company believes that showing net income available to Arch common shareholders exclusive of the items referred to above reflects the underlying fundamentals of the Company’s business since the Company evaluates the performance of and manages its business to produce an underwriting profit. In addition to presenting net income available to Arch common shareholders, the Company believes that this presentation enables investors and other users of the Company’s financial information to analyze the Company’s performance in a manner similar to how the Company’s management analyzes performance. The Company also believes that this measure follows industry practice and, therefore, allows the users of the Company’s financial information to compare the Company’s performance with its industry peer group. The Company believes that the equity analysts and certain rating agencies that follow the Company and the insurance industry as a whole generally exclude these items from their analyses for the same reasons.

The Company’s segment information includes the presentation of consolidated underwriting income or loss and a subtotal of underwriting income or loss. Such measures represent the pre-tax profitability of its underwriting operations and include net premiums earned plus other underwriting income, less losses and loss adjustment expenses, acquisition expenses and other operating expenses. Other operating expenses include those operating expenses that are incremental and/or directly attributable to the Company’s individual underwriting operations. Underwriting income or loss does not include certain income and expense items which are included in corporate. While these measures are presented in the Segment Information footnote to the Company’s Consolidated Financial Statements, they are considered non-GAAP financial measures when presented elsewhere on a consolidated basis. The reconciliations of underwriting income or loss to income before income taxes (the most directly comparable GAAP financial measure) on a consolidated basis, in accordance with Regulation G, is shown on the following pages.

Management measures segment performance for its three underwriting segments based on underwriting income or loss. The Company does not manage its assets by underwriting segment and, accordingly, investment income, income from operating affiliates and other items are not allocated to each underwriting segment.

In addition, the Company’s segment information includes the use of a combined ratio excluding catastrophic activity and prior year development, for the insurance and reinsurance segments, and a combined ratio excluding prior year development, for the mortgage segment. These ratios are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to the combined ratio (the most directly comparable GAAP financial measure) in accordance with Regulation G are shown on the individual segment pages. The Company’s management utilizes the adjusted combined ratios excluding current accident year catastrophic events and favorable or adverse development in prior year loss reserves in its analysis of the underwriting performance of each of its underwriting segments. Effective in the 2025 first quarter, the ‘Other operating expense ratio’ includes ‘Other underwriting income.’

Total return on investments includes investment income, equity in net income or loss of investments accounted for using the equity method, net realized gains and losses (excluding changes in the allowance for credit losses on non-investment related financial assets) and the change in unrealized gains and losses generated by Arch’s investment portfolio. Total return is calculated on a pre-tax basis and before investment expenses and reflects the effect of financial market conditions along with foreign currency fluctuations. Management uses total return on investments as a key measure of the return generated to Arch common shareholders, and compares the return generated by the Company’s investment portfolio against benchmark returns during the periods presented.

The following tables summarize the Company’s results by segment for the 2026 first quarter and 2025 first quarter and a reconciliation of underwriting income or loss to income or loss before income taxes and net income or loss available to Arch common shareholders:

(U.S. Dollars in millions)

Three Months Ended

March 31, 2026

Insurance

Reinsurance

Mortgage

Total

Gross premiums written (1)

$

2,697

$

3,414

$

316

$

6,425

Premiums ceded (1)

(791)

(1,238)

(50)

(2,077)

Net premiums written

1,906

2,176

266

4,348

Change in unearned premiums

(35)

(345)

18

(362)

Net premiums earned

1,871

1,831

284

3,986

Other underwriting income (2)

11

37

11

59

Losses and loss adjustment expenses

(1,126)

(948)

(15)

(2,089)

Acquisition expenses

(375)

(347)

(8)

(730)

Other operating expenses

(315)

(132)

(51)

(498)

Underwriting income (loss)

$

66

$

441

$

221

728

Net investment income

408

Net realized gains (losses)

(87)

Equity in net income of investments accounted for using the equity method

160

Other income (loss)

(5)

Corporate benefit (expenses) (3)

(31)

Transaction costs and other (3)

(18)

Amortization of intangible assets

(30)

Interest expense

(37)

Net foreign exchange gains (losses)

21

Income (loss) before income taxes and income (loss) from operating affiliates

1,109

Income tax benefit (expense)

(98)

Income (loss) from operating affiliates

36

Net income (loss) available to Arch

1,047

Preferred dividends

(10)

Net income (loss) available to Arch common shareholders

$

1,037

Underwriting Ratios

Loss ratio

60.2%

51.7%

5.3%

52.4%

Acquisition expense ratio

20.0%

19.0%

2.9%

18.3%

Other operating expense ratio (4)

16.3%

5.2%

14.1%

11.0%

Combined ratio

96.5%

75.9%

22.3%

81.7%

Net premiums written to gross premiums written

70.7%

63.7%

84.2%

67.7%

(1)

Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.

(2)

‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.

(3)

Certain expenses have been excluded from ‘Corporate benefit (expenses)’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.

(4)

The ‘Other operating expense ratio’ includes ‘Other underwriting income.’

(U.S. Dollars in millions)

Three Months Ended

March 31, 2025

Insurance

Reinsurance

Mortgage

Total

Gross premiums written (1)

$

2,645

$

3,494

$

326

$

6,463

Premiums ceded (1)

(712)

(1,178)

(60)

(1,948)

Net premiums written

1,933

2,316

266

4,515

Change in unearned premiums

(73)

(288)

34

(327)

Net premiums earned

1,860

2,028

300

4,188

Other underwriting income (2)

3

39

11

53

Losses and loss adjustment expenses

(1,228)

(1,356)

(3)

(2,587)

Acquisition expenses

(343)

(417)

(4)

(764)

Other operating expenses

(294)

(127)

(52)

(473)

Underwriting income (loss)

$

(2)

$

167

$

252

417

Net investment income

378

Net realized gains (losses)

3

Equity in net income of investments accounted for using the equity method

53

Other income (loss)

(2)

Corporate benefit (expenses) (3)

(50)

Transaction costs and other (3)

(10)

Amortization of intangible assets

(49)

Interest expense

(35)

Net foreign exchange gains (losses)

(27)

Income (loss) before income taxes and income (loss) from operating affiliates

678

Income tax benefit (expense)

(121)

Income (loss) from operating affiliates

17

Net income (loss) available to Arch

574

Preferred dividends

(10)

Net income (loss) available to Arch common shareholders

$

564

Underwriting Ratios

Loss ratio

66.0%

66.9%

1.1%

61.8%

Acquisition expense ratio

18.5%

20.6%

1.3%

18.3%

Other operating expense ratio (4)

15.6%

4.3%

13.7%

10.0%

Combined ratio

100.1%

91.8%

16.1%

90.1%

Net premiums written to gross premiums written

73.1%

66.3%

81.6%

69.9%

(1)

Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.

(2)

‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.

(3)

Certain expenses have been excluded from ‘Corporate benefit (expenses)’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.

(4)

The ‘Other operating expense ratio’ includes ‘Other underwriting income.’

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 (“PSLRA”) provides a “safe harbor” for forward-looking statements. This release or any other written or oral statements made by or on behalf of the Company may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements. Forward-looking statements, for purposes of the PSLRA or otherwise, can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” and similar statements of a future or forward-looking nature or their negative or variations or similar terminology.

Forward-looking statements involve the Company’s current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. Important factors that could cause actual events or results to differ materially from those indicated in such statements are discussed below and elsewhere in this release and in the Company’s periodic reports filed with the Securities and Exchange Commission (the “SEC”), and include:

the Company’s ability to successfully implement its business strategy during “soft” as well as “hard” markets; acceptance of the Company’s business strategy, security and financial condition by rating agencies and regulators, as well as by brokers and its insureds and reinsureds; the Company’s ability to consummate acquisitions and integrate any businesses it has acquired or may acquire into its existing operations; the Company’s ability to maintain or improve its ratings, which may be affected by its ability to raise additional equity or debt financings, by ratings agencies’ existing or new policies and practices, as well as other factors described herein; general economic and market conditions (including inflation, interest rates, unemployment, housing prices, foreign currency exchange rates, prevailing credit terms, tariffs, geopolitical instability and conflict and the depth and duration of a recession) and conditions specific to the reinsurance and insurance markets in which the Company operates; competition, including increased competition, on the basis of pricing, capacity (including alternative sources of capital), coverage terms or other factors; developments in the world’s financial and capital markets and the Company’s access to such markets; the Company’s ability to successfully enhance, integrate and maintain operating procedures (including information technology) to effectively support its current and new business; the loss and addition of key personnel; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; accuracy of those estimates and judgments utilized in the preparation of the Company’s financial statements, including those related to revenue recognition, insurance and other reserves, reinsurance recoverables, investment valuations, intangible assets, bad debts, income taxes, deferred tax assets, contingencies and litigation, and any determination to use the deposit method of accounting; greater than expected loss ratios on business written by the Company and adverse development on claim and/or claim expense liabilities related to business written by its insurance and reinsurance subsidiaries; the adequacy of the Company’s loss reserves; severity and/or frequency of losses; greater frequency or severity of unpredictable natural and man-made catastrophic events; claims for natural catastrophic events or severe economic events in the Company’s insurance, reinsurance and mortgage businesses could cause large losses and substantial volatility in the Company’s results of operations; availability to the Company of reinsurance to manage our net exposures and the cost of such reinsurance; the failure of reinsurers, managing general agents, third party administrators or others to meet their obligations to the Company; the timing of loss payments being faster or the receipt of reinsurance recoverables being slower than anticipated by the Company; the Company’s investment performance, including legislative or regulatory developments that may adversely affect the fair value of the Company’s investments; changes in general economic conditions, resulting in downgrades of U.S. securities or sovereign debt by credit rating agencies, which could affect the Company’s business, financial condition and results of operations; an incident, disruption in operations or other cyber event caused by cyber attacks, the use of artificial intelligence technologies or other technology on the Company’s systems or those of the Company’s business partners and service providers, which could negatively impact the Company’s business and/or expose the Company to litigation; the effect of climate change on the Company’s business; the effect of contagious diseases or a pandemic on the Company’s business; acts of terrorism, political unrest and other hostilities or other unforecasted and unpredictable events caused by humans; the volatility of the Company’s shareholders’ equity from foreign currency fluctuations, which could increase due to us not matching portions of the Company’s projected liabilities in foreign currencies with investments in the same currencies; changes in accounting principles or policies or in the Company’s application of such accounting principles or policies; changes in the political environment of certain countries in which the Company operate or underwrite business; statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters such as the adoption of legislation that affects Bermuda-headquartered companies and/or Bermuda-based insurers or reinsurers and/or changes in regulations or tax laws applicable to the Company, its subsidiaries, brokers or customers, including the implementation of the Organization for Economic Cooperation and Development (“OECD”) Pillar I and Pillar II initiative and the enactment of the Bermuda corporate income tax; and the other matters set forth under Item 1A “Risk Factors”, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026 and of the Company’s latest Quarterly Reports on Form 10-Q, as well as the other factors set forth in the Company’s other documents on file with the SEC, and management’s response to any of the aforementioned factors. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. The Company's forward-looking statements speak only as of the date of this press release or as of the date they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Source: Arch Capital Group Ltd.
arch-corporate

More News From Arch Capital Group Ltd.

Arch Capital Group (ACGL - Free Report) reported $4.39 billion in revenue for the quarter ended March 2026, representing a year-over-year decline of 3.8%. EPS of $2.50 for the same period compares to $1.54 a year ago.

The reported revenue represents a surprise of -6.11% over the Zacks Consensus Estimate of $4.67 billion. With the consensus EPS estimate being $2.45, the EPS surprise was +2.16%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Arch Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Combined Ratio - Total: 81.7% versus 83.1% estimated by four analysts on average.Underwriting Expense Ratio - Other Operating Expense Ratio - Mortgage Segment: 14.1% versus the four-analyst average estimate of 16.2%.Loss Ratio - Total: 52.4% compared to the 54.5% average estimate based on four analysts.Expense Ratio - Total Acquisition Expense Ratio: 18.3% compared to the 18.4% average estimate based on four analysts.Revenues- Other income (loss): $-5 million compared to the $9 million average estimate based on four analysts. The reported number represents a change of +150% year over year.Revenues- Net investment income: $408 million versus the four-analyst average estimate of $417.66 million. The reported number represents a year-over-year change of +7.9%.Revenues- Net premiums earned- Reinsurance Segment: $1.83 billion compared to the $1.98 billion average estimate based on four analysts. The reported number represents a change of -9.7% year over year.Revenues- Net premiums earned- Insurance Segment: $1.87 billion compared to the $1.97 billion average estimate based on four analysts. The reported number represents a change of +0.6% year over year.Revenues- Net premiums earned: $3.99 billion versus the four-analyst average estimate of $4.24 billion. The reported number represents a year-over-year change of -4.8%.Revenues- Other underwriting income (loss): $59 million versus $39.89 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.3% change.Revenues- Net premiums earned- Mortgage Segment: $284 million versus the four-analyst average estimate of $288.77 million. The reported number represents a year-over-year change of -5.3%.Revenues- Equity in net income (loss) of investment funds accounted for using the equity method: $160 million versus $92.39 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +201.9% change.View all Key Company Metrics for Arch Capital here>>>

Shares of Arch Capital have returned +0.8% over the past month versus the Zacks S&P 500 composite's +12.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways ACGL's Q1 EPS of $2.50 beat estimates, rising 15.4% YoY on strong underwriting gains. Arch Capital Group's underwriting income surged 74.6% with the combined ratio improving to 81.7. ACGL's revenues fell 3.8% due to lower premiums, while net investment income increased 7.9%. Arch Capital Group Ltd. (ACGL - Free Report) reported first-quarter 2026 operating income of $2.50 per share, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 15.4% year over year.

ACGL’s quarterly results benefited from improved net investment income, stronger underwriting performance and lower catastrophe losses. These positives were partially offset by declining premium volumes and weakness in the mortgage segment.

Behind the HeadlinesOperating revenues of $4.4 billion decreased 3.8% year over year, primarily due to lower net premiums earned. Revenues missed the Zacks Consensus Estimate by 6.1%.

Gross premiums written decreased 0.6% year over year to $6.4 billion.

Net premiums earned declined 4.8% year over year to $3.9 billion, mainly due to lower premiums earned in its Reinsurance segment. The figure missed the Zacks Consensus Estimate by 6%.

Pre-tax net investment income increased 7.9% year over year to $408 million, missing the Zacks Consensus Estimate of $417 million. The figure was higher than our estimate of $378.2 million.

Pre-tax current accident year catastrophic losses for the company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, totaled $174 million.

Arch Capital Group’s underwriting income increased 74.6% year over year to $728 million. The combined ratio, representing the percentage of premiums paid out as claims and expenses, improved 440 basis points to 81.7 year over year, beating the Zacks Consensus Estimate of 83.1 and our model estimate of 83.2.

Q1 Segmental ResultsInsurance: Gross premiums written increased 2% year over year to $2.7 billion. Net premiums written declined 1.4% year over year to $1.9 billion, primarily due to the non-renewal of select MCE-related programs. Net premiums written also came in below our estimate of $2.1 billion.

Underwriting income was $66 million, rebounding from a year-ago loss of $2 million, though it fell short of our estimate of $155.4 million. The combined ratio improved 360 basis points year over year to 96.5, marginally above the Zacks Consensus Estimate of 94.4.

Reinsurance: Gross premiums written decreased 2.3% year over year to $3.4 billion. Net premiums written declined 6% year over year to $2.1 billion, primarily reflecting a reduction in property catastrophe business. The figure was on par with our estimate.

Underwriting income totaled $441 million, up 164% year over year. The combined ratio improved 1590 basis points year over year to 75.9, significantly better than the Zacks Consensus Estimate of 80.7.

Mortgage: Gross premiums written declined 3.1% year over year to $316 million, primarily due to lower U.S. monthly premium business. Net premiums written remained flat year over year to $266 million. Net premiums written exceeded our estimate of $254.7 million.

Underwriting income declined 12.3% year over year to $221 million. The combined ratio deteriorated 620 basis points year over year to 22.3, and it remained well below the Zacks Consensus Estimate of 22.8.

Financial UpdateArch Capital Group exited the first quarter with cash and cash equivalents of $914 million, down 8% from the 2025-end level.

Total debt was $2.7 billion as of March 31, 2026, and remained flat from the 2025-end level.

Book value per share was $66.19 as of March 31, 2026, reflecting an increase of 1.7% from the 2025-end level.

Annualized operating return on average commonequity expanded 240 basis points year over year to 15.4%.

Net cash provided by operating activities was $1.2 billion, down 18.5% year over year.

During the first quarter of 2026, ACGL repurchased common shares worth of $783 million.

Zacks RankACGL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other InsurersCincinnati Financial Corporation (CINF - Free Report) reported first-quarter 2026 operating income of $2.10 per share, which surpassed the Zacks Consensus Estimate by 8.8%. The bottom line improved significantly, from a loss of 24 cents to $2.10 per share year over year.

Total operating revenues for the quarter were $2.9 billion, reflecting a 12% year-over-year increase, though the figure missed the Zacks Consensus Estimate by 0.7%.

The Progressive Corporation’s (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.

Operating revenues grew 8.2% year over year to $22.3 billion driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%. Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.

Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.

Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure was on par with our estimate.

Arch Capital Group Ltd. (ACGL) Q1 2026 Earnings Call Transcript