Chubb (CB) Dips More Than Broader Markets: What You Should Know
Chubb (CB) closed at $209.50 in the latest trading session, marking a -0.72% move from the prior day. This change lagged the S&P 500's 0.47% loss on the day. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq lost 15.51%.
Coming into today, shares of the insurer had lost 7.24% in the past month. In that same time, the Finance sector lost 2.63%, while the S&P 500 lost 2.53%.
Chubb will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.36, up 14.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.15 billion, up 15.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $17.42 per share and revenue of $48.09 billion, which would represent changes of +14.3% and +8.28%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Chubb. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.35% higher within the past month. Chubb is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Chubb is holding a Forward P/E ratio of 12.11. This represents a discount compared to its industry's average Forward P/E of 13.28.
Also, we should mention that CB has a PEG ratio of 1.21. 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 Insurance - Property and Casualty was holding an average PEG ratio of 1.33 at yesterday's closing price.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Chubb Limited (CB) : Free Stock Analysis Report
