Back to top

Image: Bigstock

Should Value Investors Buy Chubb Limited (CB) Stock?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

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 is trading with a P/E ratio of 11.41, which compares to its industry's average of 24.80. CB's Forward P/E has been as high as 16.31 and as low as 11.25, with a median of 13.61, all within the past year.

We also note that CB holds a PEG ratio of 1.14. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CB's industry currently sports an average PEG of 2.37. Within the past year, CB's PEG has been as high as 1.63 and as low as 1.13, with a median of 1.36.

Finally, we should also recognize that CB has a P/CF ratio of 10.41. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CB's current P/CF looks attractive when compared to its industry's average P/CF of 24.92. 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 9.62.

These are only a few of the key metrics included in Chubb Limited's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CB looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Chubb Limited (CB) - free report >>

Published in