Chubb (CB) Declines More Than Market: Some Information for Investors

Chubb (CB) ended the recent trading session at $323.64, demonstrating a -1.32% change from the preceding day's closing price. This change lagged the S&P 500's 0.28% loss on the day. Meanwhile, the Dow experienced a drop of 0.44%, and the technology-dominated Nasdaq saw a decrease of 0.28%.

Coming into today, shares of the insurer had lost 0.4% in the past month. In that same time, the Finance sector lost 6.73%, while the S&P 500 lost 3.59%.

Market participants will be closely following the financial results of Chubb in its upcoming release. In that report, analysts expect Chubb to post earnings of $6.47 per share. This would mark year-over-year growth of 75.82%. Alongside, our most recent consensus estimate is anticipating revenue of $14.86 billion, indicating a 8.68% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $26.4 per share and revenue of $63.36 billion, indicating changes of +6.49% and +5.67%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Chubb should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.24% higher. Right now, Chubb possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Chubb is holding a Forward P/E ratio of 12.42. This denotes a premium relative to the industry average Forward P/E of 9.94.

It's also important to note that CB currently trades at a PEG ratio of 2.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 2.03 based on yesterday's closing prices.

The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 30, positioning it in the top 13% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CB in the coming trading sessions, be sure to utilize Zacks.com.

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

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