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Should Value Investors Buy Chubb Limited (CB) Stock?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

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 P/E ratio of 13.28 right now. For comparison, its industry sports an average P/E of 25.90. Over the last 12 months, CB's Forward P/E has been as high as 16.31 and as low as 10.42, with a median of 12.73.

Investors should also note that CB holds a PEG ratio of 1.33. 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 has an average PEG of 2.42 right now. Within the past year, CB's PEG has been as high as 1.63 and as low as 1.04, with a median of 1.27.

If you're looking for another solid Insurance - Property and Casualty value stock, take a look at The Travelers Companies (TRV - Free Report) . TRV is a # 2 (Buy) stock with a Value score of A.

Shares of The Travelers Companies currently holds a Forward P/E ratio of 13.18, and its PEG ratio is 2.40. In comparison, its industry sports average P/E and PEG ratios of 25.90 and 2.42.

TRV's Forward P/E has been as high as 14.22 and as low as 10.46, with a median of 12.61. During the same time period, its PEG ratio has been as high as 4.49, as low as 1.94, with a median of 3.03.

The Travelers Companies also has a P/B ratio of 2.28 compared to its industry's price-to-book ratio of 1.57. Over the past year, its P/B ratio has been as high as 2.28, as low as 1.36, with a median of 1.67.

Value investors will likely look at more than just these metrics, but the above data helps show that Chubb Limited and The Travelers Companies are likely undervalued currently. And when considering the strength of its earnings outlook, CB and TRV sticks out as one of the market's strongest value stocks.


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