In the latest trading session, Chubb (CB) closed at $283.19, marking a +2.07% move from the previous day. This change outpaced the S&P 500's 0.85% gain on the day. Meanwhile, the Dow experienced a rise of 1.36%, and the technology-dominated Nasdaq saw an increase of 0.72%.
The stock of insurer has risen by 0.88% in the past month, lagging the Finance sector's gain of 2.7% and the S&P 500's gain of 2.38%.
The investment community will be paying close attention to the earnings performance 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 Zacks Consensus Estimate for revenue is projecting net sales of $15.87 billion, up 5.73% from the year-ago period.
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.
Investors might also notice recent changes to analyst estimates for Chubb. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.28% higher within the past month. At present, Chubb boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Chubb has a Forward P/E ratio of 12.86 right now. This represents a premium compared to its industry average Forward P/E of 11.65.
It is also worth noting that CB currently has a PEG ratio of 3.13. 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 of the close of trade yesterday, the Insurance - Property and Casualty industry held an average PEG ratio of 2.42.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 33, finds itself in the top 14% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Chubb Limited (CB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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