Chubb (CB) closed the most recent trading day at $334.14, moving -1.23% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.78%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 1.29%.
The stock of insurer has risen by 7.95% in the past month, leading the Finance sector's loss of 3.3% and the S&P 500's loss of 1.33%.
The investment community will be paying close attention to the earnings performance of Chubb in its upcoming release. The company's earnings per share (EPS) are projected to be $6.48, reflecting a 76.09% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $14.82 billion, indicating a 8.44% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $26.4 per share and revenue of $63.3 billion, which would represent changes of +6.49% and +5.57%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Chubb. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.1% higher. As of now, Chubb holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Chubb is holding a Forward P/E ratio of 12.81. This expresses a premium compared to the average Forward P/E of 10.59 of its industry.
Meanwhile, CB's PEG ratio is currently 2.14. 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. The average PEG ratio for the Insurance - Property and Casualty industry stood at 2.18 at the close of the market yesterday.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Chubb Limited (CB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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