Chubb (CB) ended the recent trading session at $290.70, demonstrating a -0.77% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.76% for the day. Elsewhere, the Dow saw a downswing of 1.14%, while the tech-heavy Nasdaq depreciated by 0.18%.
Heading into today, shares of the insurer had gained 9.9% over the past month, outpacing the Finance sector's loss of 5.26% and the S&P 500's loss of 7.29% in that time.
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 $3.50 per share. This would mark a year-over-year decline of 35.3%. Simultaneously, our latest consensus estimate expects the revenue to be $14.14 billion, showing an 8.24% escalation compared to the year-ago quarter.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chubb. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.65% lower. Chubb currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Chubb currently has a Forward P/E ratio of 13.62. This denotes a premium relative to the industry's average Forward P/E of 11.31.
One should further note that CB currently holds a PEG ratio of 3.68. 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. The average PEG ratio for the Insurance - Property and Casualty industry stood at 1.73 at the close of the market yesterday.
The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 34, positioning it in the top 14% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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