We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Chubb Limited (CB) Right Now?
Read MoreHide Full Article
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Chubb Limited (CB - Free Report) . CB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.25, while its industry has an average P/E of 26.61. Over the last 12 months, CB's Forward P/E has been as high as 16.31 and as low as 11.25, with a median of 13.67.
CB is also sporting a PEG ratio of 1.23. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CB's industry currently sports an average PEG of 2.63. CB's PEG has been as high as 1.63 and as low as 1.13, with a median of 1.37, all within the past year.
Finally, investors will want to recognize that CB has a P/CF ratio of 11.07. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CB's current P/CF looks attractive when compared to its industry's average P/CF of 26.19. Over the past 52 weeks, CB's P/CF has been as high as 11.07 and as low as 8.06, with a median of 9.49.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at NMI (NMIH - Free Report) . NMIH is a # 2 (Buy) stock with a Value score of A.
NMI sports a P/B ratio of 1.27 as well; this compares to its industry's price-to-book ratio of 1.40. In the past 52 weeks, NMIH's P/B has been as high as 1.46, as low as 0.87, with a median of 1.19.
Value investors will likely look at more than just these metrics, but the above data helps show that Chubb Limited and NMI are likely undervalued currently. And when considering the strength of its earnings outlook, CB and NMIH sticks out as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Chubb Limited (CB) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Chubb Limited (CB - Free Report) . CB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.25, while its industry has an average P/E of 26.61. Over the last 12 months, CB's Forward P/E has been as high as 16.31 and as low as 11.25, with a median of 13.67.
CB is also sporting a PEG ratio of 1.23. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CB's industry currently sports an average PEG of 2.63. CB's PEG has been as high as 1.63 and as low as 1.13, with a median of 1.37, all within the past year.
Finally, investors will want to recognize that CB has a P/CF ratio of 11.07. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CB's current P/CF looks attractive when compared to its industry's average P/CF of 26.19. Over the past 52 weeks, CB's P/CF has been as high as 11.07 and as low as 8.06, with a median of 9.49.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at NMI (NMIH - Free Report) . NMIH is a # 2 (Buy) stock with a Value score of A.
NMI sports a P/B ratio of 1.27 as well; this compares to its industry's price-to-book ratio of 1.40. In the past 52 weeks, NMIH's P/B has been as high as 1.46, as low as 0.87, with a median of 1.19.
Value investors will likely look at more than just these metrics, but the above data helps show that Chubb Limited and NMI are likely undervalued currently. And when considering the strength of its earnings outlook, CB and NMIH sticks out as one of the market's strongest value stocks.