{"id":109017,"date":"2026-07-28T15:01:11","date_gmt":"2026-07-28T15:01:11","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/109017\/"},"modified":"2026-07-28T15:01:11","modified_gmt":"2026-07-28T15:01:11","slug":"3-reasons-to-avoid-cb-and-1-stock-to-buy-instead","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/109017\/","title":{"rendered":"3 Reasons to Avoid CB and 1 Stock to Buy Instead"},"content":{"rendered":"

Over the past six months, Chubb has been a great trade, beating the S&P 500 by 11.6%. Its stock price has climbed to $357.81, representing a healthy 17.8% increase. This performance may have investors wondering how to approach the situation. <\/p>\n

Is now the time to buy Chubb, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team\u2019s opinion, it\u2019s free<\/a>. <\/p>\n

Why Is Chubb Not Exciting?<\/p>\n

We\u2019re happy investors have made money, but we don\u2019t have much confidence in Chubb. Here are three reasons why there are better opportunities than CB, plus one stock we\u2019d rather own. <\/p>\n

1. Net Premiums Earned Point to Soft Demand<\/p>\n

When insurers sell policies, they protect themselves from extremely large losses or an outsized accumulation of losses with reinsurance (insurance for insurance companies). Net premiums earned are therefore net of what\u2019s ceded to reinsurers as a risk mitigation and transfer strategy. <\/p>\n

Chubb\u2019s net premiums earned has grown at a 6.8% annualized rate over the last two years, slightly worse than the broader insurance industry and in line with its total revenue. <\/p>\n

\"Chubb2. Projected Revenue Growth Shows Limited Upside<\/p>\n

Forecasted revenues by Wall Street analysts signal a company\u2019s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. <\/p>\n

Over the next 12 months, sell-side analysts expect Chubb\u2019s revenue to stall, a deceleration versus its 7.2% annualized growth for the past two years. This projection doesn\u2019t excite us and suggests its products and services will see some demand headwinds. <\/p>\n

3. Recent EPS Growth Below Our Standards<\/p>\n

While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business. <\/p>\n

Chubb\u2019s EPS grew at an unimpressive 16.9% compounded annual growth rate over the last two years. On the bright side, this performance was higher than its 7.2% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded. <\/p>\n

\"ChubbFinal Judgment<\/p>\n

Chubb isn\u2019t a terrible business, but it doesn\u2019t pass our quality test. With its shares topping the market in recent months, the stock trades at 1.7\u00d7 forward P\/B (or $357.81 per share). Investors with a higher risk tolerance might like the company, but we think the potential downside is too great. We\u2019re fairly confident there are better stocks to buy right now. We\u2019d recommend looking at the Amazon and PayPal of Latin America<\/a>. <\/p>\n

Stocks We Like More Than Chubb <\/p>\n

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren\u2019t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum \u2014 both boxes checked at the same time.<\/p>\n

Find out which stocks our AI platform is flagging this week. See this week\u2019s Strong Momentum stocks \u2014 FREE. Get Our Strong Momentum Stocks for Free HERE<\/a>.<\/p>\n

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"Over the past six months, Chubb has been a great trade, beating the S&P 500 by 11.6%. Its…\n","protected":false},"author":2,"featured_media":109018,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[131],"tags":[53070,240,278,18339],"class_list":["post-109017","post","type-post","status-publish","format-standard","has-post-thumbnail","category-chubb","tag-cb-three-reasons","tag-chubb","tag-financial-analysis","tag-stock-market-news"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116998208489978901","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/109017","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=109017"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/109017\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/109018"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=109017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=109017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=109017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}