Chubb (CB) Ascends While Market Falls: Some Facts to Note

Zacks
18 Dec 2024

Chubb (CB) closed the most recent trading day at $276.69, moving +0.35% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.39%. At the same time, the Dow lost 0.61%, and the tech-heavy Nasdaq lost 0.32%.

Shares of the insurer witnessed a loss of 4.51% over the previous month, trailing the performance of the Finance sector with its gain of 0.19% and the S&P 500's gain of 3.6%.

The investment community will be closely monitoring the performance of Chubb in its forthcoming earnings report. In that report, analysts expect Chubb to post earnings of $5.47 per share. This would mark a year-over-year decline of 34.1%. Alongside, our most recent consensus estimate is anticipating revenue of $14.5 billion, indicating an 8.36% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $21.82 per share and revenue of $56.5 billion, indicating changes of -3.19% and +10.67%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Chubb should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Chubb holds a Zacks Rank of #3 (Hold).

Investors should also note Chubb's current valuation metrics, including its Forward P/E ratio of 12.64. This expresses a discount compared to the average Forward P/E of 13.57 of its industry.

Also, we should mention that CB has a PEG ratio of 6.41. 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. As the market closed yesterday, the Insurance - Property and Casualty industry was having an average PEG ratio of 1.36.

The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 26, positioning it in the top 11% of all 250+ industries.

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

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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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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