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Should Value Investors Buy Chubb Limited (CB) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Chubb Limited (CB - Free Report) is a stock many investors are watching right now. 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 10.88, while its industry has an average P/E of 25.84. Over the past year, CB's Forward P/E has been as high as 14.59 and as low as 9.96, with a median of 10.93.

We also note that CB holds a PEG ratio of 1.09. 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. CB's industry currently sports an average PEG of 2.43. Over the past 52 weeks, CB's PEG has been as high as 1.46 and as low as 1, with a median of 1.09.

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

W.R. Berkley is currently trading with a Forward P/E ratio of 12.28 while its PEG ratio sits at 1.36. Both of the company's metrics compare favorably to its industry's average P/E of 25.84 and average PEG ratio of 2.43.

Over the past year, WRB's P/E has been as high as 16.90, as low as 11.29, with a median of 12.27; its PEG ratio has been as high as 1.88, as low as 1.25, with a median of 1.09 during the same time period.

W.R. Berkley sports a P/B ratio of 2.56 as well; this compares to its industry's price-to-book ratio of 1.40. In the past 52 weeks, WRB's P/B has been as high as 3.18, as low as 2.08, with a median of 2.38.

These are just a handful of the figures considered in Chubb Limited and W.R. Berkley's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CB and WRB is an impressive value stock right now.


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