Chubb (CB) Outpaces Stock Market Gains: What You Should Know

·3-min read

Chubb (CB) closed at $188.92 in the latest trading session, marking a +1.27% move from the prior day. This move outpaced the S&P 500's daily gain of 0.17%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.67%.

Prior to today's trading, shares of the insurer had lost 11.55% over the past month. This has lagged the Finance sector's loss of 8.6% and the S&P 500's gain of 0.25% in that time.

Investors will be hoping for strength from Chubb as it approaches its next earnings release. On that day, Chubb is projected to report earnings of $4.35 per share, which would represent year-over-year growth of 13.87%. Meanwhile, our latest consensus estimate is calling for revenue of $11.15 billion, up 15.63% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $17.40 per share and revenue of $48.09 billion, which would represent changes of +14.17% and +8.28%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Chubb. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. Chubb currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Chubb is currently trading at a Forward P/E ratio of 10.72. This represents a discount compared to its industry's average Forward P/E of 12.47.

It is also worth noting that CB currently has a PEG ratio of 1.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.12 based on yesterday's closing prices.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Chubb Limited (CB) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research