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

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Chubb (CB - Free Report) closed the latest trading day at $267.67, indicating a +0.07% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 0.78% for the day. Elsewhere, the Dow saw a downswing of 1.29%, while the tech-heavy Nasdaq depreciated by 0.7%.

Prior to today's trading, shares of the insurer had gained 1.69% over the past month. This has outpaced the Finance sector's loss of 0.59% and lagged the S&P 500's gain of 2.14% in that time.

The investment community will be paying close attention to the earnings performance of Chubb in its upcoming release. The company is slated to reveal its earnings on July 23, 2024. The company is predicted to post an EPS of $5.07, indicating a 3.05% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $13.67 billion, showing a 11.67% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $20.93 per share and revenue of $55.94 billion, which would represent changes of -7.14% and +9.57%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chubb. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.19% lower within the past month. Chubb is currently sporting a Zacks Rank of #4 (Sell).

Looking at valuation, Chubb is presently trading at a Forward P/E ratio of 12.78. This valuation marks a discount compared to its industry's average Forward P/E of 13.34.

It is also worth noting that CB currently has a PEG ratio of 6.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Insurance - Property and Casualty industry had an average PEG ratio of 1.63.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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