Chubb (CB) Flat As Market Gains: What You Should Know

Zacks
25 Mar

The most recent trading session ended with Chubb (CB) standing at $291.44, reflecting no shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1.77%. Meanwhile, the Dow experienced a rise of 1.42%, and the technology-dominated Nasdaq saw an increase of 2.28%.

The insurer's stock has climbed by 9.05% in the past month, exceeding the Finance sector's loss of 1.46% and the S&P 500's loss of 5.73%.

The investment community will be paying close attention to the earnings performance of Chubb in its upcoming release. The company is forecasted to report an EPS of $3.28, showcasing a 39.37% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.14 billion, up 8.21% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $21.10 per share and a revenue of $60.3 billion, demonstrating changes of -6.26% and +7.25%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Chubb. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Chubb is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Chubb is presently trading at a Forward P/E ratio of 13.81. This signifies a premium in comparison to the average Forward P/E of 11.86 for its industry.

It is also worth noting that CB currently has a PEG ratio of 3.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Insurance - Property and Casualty industry held an average PEG ratio of 1.64.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 32, finds itself in the top 13% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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