We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Is Chubb Limited (CB) Stock Undervalued Right Now?
Read MoreHide Full Article
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 10.71, while its industry has an average P/E of 25.41. 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 10.90.
Investors will also notice that CB has a PEG ratio of 1.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CB's PEG compares to its industry's average PEG of 2.39. 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 NMI (NMIH - Free Report) . NMIH is a # 2 (Buy) stock with a Value score of A.
NMI is trading at a forward earnings multiple of 7.16 at the moment, with a PEG ratio of 0.68. This compares to its industry's average P/E of 25.41 and average PEG ratio of 2.39.
NMIH's price-to-earnings ratio has been as high as 7.78 and as low as 5.35, with a median of 6.80, while its PEG ratio has been as high as 0.70 and as low as 0.63, with a median of 0.65, all within the past year.
Furthermore, NMI holds a P/B ratio of 1.32 and its industry's price-to-book ratio is 1.44. NMIH's P/B has been as high as 1.40, as low as 1.04, with a median of 1.23 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Chubb Limited and NMI are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CB and NMIH feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Chubb Limited (CB) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 10.71, while its industry has an average P/E of 25.41. 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 10.90.
Investors will also notice that CB has a PEG ratio of 1.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CB's PEG compares to its industry's average PEG of 2.39. 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 NMI (NMIH - Free Report) . NMIH is a # 2 (Buy) stock with a Value score of A.
NMI is trading at a forward earnings multiple of 7.16 at the moment, with a PEG ratio of 0.68. This compares to its industry's average P/E of 25.41 and average PEG ratio of 2.39.
NMIH's price-to-earnings ratio has been as high as 7.78 and as low as 5.35, with a median of 6.80, while its PEG ratio has been as high as 0.70 and as low as 0.63, with a median of 0.65, all within the past year.
Furthermore, NMI holds a P/B ratio of 1.32 and its industry's price-to-book ratio is 1.44. NMIH's P/B has been as high as 1.40, as low as 1.04, with a median of 1.23 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Chubb Limited and NMI are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CB and NMIH feels like a great value stock at the moment.