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.