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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.
