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Chubb (CB) Gains As Market Dips: What You Should Know

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In the latest trading session, Chubb (CB - Free Report) closed at $275.90, marking a +1.06% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.55%. Meanwhile, the Dow experienced a drop of 0.19%, and the technology-dominated Nasdaq saw a decrease of 0.95%.

Prior to today's trading, shares of the insurer had lost 0.51% lagged the Finance sector's gain of 2.06% and the S&P 500's gain of 3.64%.

Market participants will be closely following the financial results of Chubb in its upcoming release. In that report, analysts expect Chubb to post earnings of $5.39 per share. This would mark a year-over-year decline of 5.77%. Meanwhile, the latest consensus estimate predicts the revenue to be $15.87 billion, indicating a 5.73% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $21.57 per share and a revenue of $59.41 billion, representing changes of -4.18% and +5.66%, respectively, from the prior year.

Any recent changes to analyst estimates for Chubb should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Chubb boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Chubb is presently trading at a Forward P/E ratio of 12.66. This signifies a premium in comparison to the average Forward P/E of 11.37 for its industry.

Also, we should mention that CB has a PEG ratio of 3.08. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Insurance - Property and Casualty industry was having an average PEG ratio of 2.46.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% of all 250+ industries.

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

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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