Chubb (CB) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Chubb (CB) closed at $348.25, marking a +2.6% move from the previous day. This change outpaced the S&P 500's 1.06% gain on the day. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.4%.

Prior to today's trading, shares of the insurer had lost 3.72% lagged the Finance sector's gain of 0.85% and the S&P 500's gain of 2.46%.

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 $6.22 per share. This would mark a year-over-year decline of 16.96%. Alongside, our most recent consensus estimate is anticipating revenue of $16.71 billion, indicating a 3.59% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $27.35 per share and a revenue of $64.33 billion, demonstrating changes of +10.33% and +7.29%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Chubb. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% higher. Chubb presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Chubb is holding a Forward P/E ratio of 12.41. For comparison, its industry has an average Forward P/E of 11.55, which means Chubb is trading at a premium to the group.

One should further note that CB currently holds a PEG ratio of 1.62. 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 1.71.

The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 60, placing it within the top 25% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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