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Chubb (CB) Stock Slides as Market Rises: Facts to Know Before You Trade

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Chubb (CB - Free Report) closed at $289.80 in the latest trading session, marking a -1.37% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.09% for the day.

The insurer's stock has climbed by 1.36% in the past month, falling short of the Finance sector's gain of 5.44% and the S&P 500's gain of 7.21%.

The investment community will be paying close attention to the earnings performance of Chubb in its upcoming release. The company is forecasted to report an EPS of $5.84, showcasing an 8.55% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $14.85 billion, indicating a 7.15% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $21.21 per share and a revenue of $59.74 billion, demonstrating changes of -5.78% and +6.25%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Chubb. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Chubb is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Chubb currently has a Forward P/E ratio of 13.85. This valuation marks a premium compared to its industry's average Forward P/E of 12.07.

We can also see that CB currently has a PEG ratio of 3.27. 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. As the market closed yesterday, the Insurance - Property and Casualty industry was having an average PEG ratio of 2.76.

The Insurance - Property and Casualty industry is part of the Finance sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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