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Chubb Limited (CB) Hits Fresh High: Is There Still Room to Run?
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Shares of Chubb (CB - Free Report) have been strong performers lately, with the stock up 10.2% over the past month. The stock hit a new 52-week high of $249.62 in the previous session. Chubb has gained 10.3% since the start of the year compared to the 0.1% move for the Zacks Finance sector and the 9.3% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 30, 2024, Chubb reported EPS of $8.3 versus consensus estimate of $5.07 while it beat the consensus revenue estimate by 3.92%.
For the current fiscal year, Chubb is expected to post earnings of $20.93 per share on $54.45 billion in revenues. This represents a -7.14% change in EPS on a 6.65% change in revenues. For the next fiscal year, the company is expected to earn $23.16 per share on $58.3 billion in revenues. This represents a year-over-year change of 10.66% and 7.07%, respectively.
Valuation Metrics
Chubb may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Chubb has a Value Score of B. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.5X. On a trailing cash flow basis, the stock currently trades at 10.5X versus its peer group's average of 16.1X. Additionally, the stock has a PEG ratio of 1.19. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Chubb currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Chubb meets the list of requirements. Thus, it seems as though Chubb shares could have a bit more room to run in the near term.
How Does CB Stack Up to the Competition?
Shares of CB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The Progressive Corporation (PGR - Free Report) . PGR has a Zacks Rank of # 1 (Strong Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. The Progressive Corporation beat our consensus estimate by 24.37%, and for the current fiscal year, PGR is expected to post earnings of $8.59 per share on revenue of $70.74 billion.
Shares of The Progressive Corporation have gained 10.2% over the past month, and currently trade at a forward P/E of 21.2X and a P/CF of 39.17X.
The Insurance - Property and Casualty industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CB and PGR, even beyond their own solid fundamental situation.
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Chubb Limited (CB) Hits Fresh High: Is There Still Room to Run?
Shares of Chubb (CB - Free Report) have been strong performers lately, with the stock up 10.2% over the past month. The stock hit a new 52-week high of $249.62 in the previous session. Chubb has gained 10.3% since the start of the year compared to the 0.1% move for the Zacks Finance sector and the 9.3% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 30, 2024, Chubb reported EPS of $8.3 versus consensus estimate of $5.07 while it beat the consensus revenue estimate by 3.92%.
For the current fiscal year, Chubb is expected to post earnings of $20.93 per share on $54.45 billion in revenues. This represents a -7.14% change in EPS on a 6.65% change in revenues. For the next fiscal year, the company is expected to earn $23.16 per share on $58.3 billion in revenues. This represents a year-over-year change of 10.66% and 7.07%, respectively.
Valuation Metrics
Chubb may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Chubb has a Value Score of B. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.5X. On a trailing cash flow basis, the stock currently trades at 10.5X versus its peer group's average of 16.1X. Additionally, the stock has a PEG ratio of 1.19. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Chubb currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Chubb meets the list of requirements. Thus, it seems as though Chubb shares could have a bit more room to run in the near term.
How Does CB Stack Up to the Competition?
Shares of CB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The Progressive Corporation (PGR - Free Report) . PGR has a Zacks Rank of # 1 (Strong Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. The Progressive Corporation beat our consensus estimate by 24.37%, and for the current fiscal year, PGR is expected to post earnings of $8.59 per share on revenue of $70.74 billion.
Shares of The Progressive Corporation have gained 10.2% over the past month, and currently trade at a forward P/E of 21.2X and a P/CF of 39.17X.
The Insurance - Property and Casualty industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CB and PGR, even beyond their own solid fundamental situation.