10 Most Undervalued Financial Stocks to Buy According to Analysts

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1. Arch Capital Group Ltd. (NASDAQ:ACGL)

Price to Earnings Ratio as of June 12: 11.59

Stock Upside Potential: 23.62%

Arch Capital Group Ltd (NASDAQ:ACGL) is one of the most undervalued financial stocks to buy according to analysts. On June 11, UBS reiterated a Buy rating on the stock with a $124 price target. The bullish stance underscores confidence in the company’s ability to deliver solid premium growth, attractive underwriting margins, and increased capital return.

Analysts at UBS remain optimistic of Arch Capital’s ability to deliver more than $3 billion of capital over the next 12 months. It also expects the financial institution to make more than $2 billion available for share buybacks and special dividends.

In addition, the analysts cited the better-than-expected insurance margins from MidCorp, strong capital management, and attractive valuation for the Buy rating. According to the research firm, Arch Capital boasts an attractive price-to-book ratio in line with its 10-year average. Its price-to-earnings ratio is also near the low end of the 10-year range. UBS expects Arch Capital to continue accumulating significant excess capital that could be deployed to benefit shareholders

Arch Capital Group Ltd (NASDAQ:ACGL) is a global financial services company operating worldwide, specializing in insurance, reinsurance, and mortgage insurance. They offer a variety of specialty risk solutions to clients across diverse industries and geographic locations.

While we acknowledge the potential of ACGL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ACGL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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