The most recent trading session ended with Chubb (CB) standing at $284.15, reflecting a -1.91% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily loss of 1.22%. Meanwhile, the Dow experienced a drop of 1.55%, and the technology-dominated Nasdaq saw a decrease of 0.35%.
Heading into today, shares of the insurer had gained 5.75% over the past month, outpacing the Finance sector's gain of 0.91% and the S&P 500's loss of 2.31% in that time.
The upcoming earnings release of Chubb will be of great interest to investors. In that report, analysts expect Chubb to post earnings of $3.50 per share. This would mark a year-over-year decline of 35.3%. In the meantime, our current consensus estimate forecasts the revenue to be $14.14 billion, indicating an 8.24% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $21.52 per share and revenue of $60.31 billion. These totals would mark changes of -4.4% and +7.27%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Chubb. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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.
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 past month, there's been a 2.75% fall in the Zacks Consensus EPS estimate. Chubb is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Chubb is currently being traded at a Forward P/E ratio of 13.46. This signifies a premium in comparison to the average Forward P/E of 11.44 for its industry.
It is also worth noting that CB currently has a PEG ratio of 3.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.
The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 32, placing it within the top 13% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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