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Chubb (CB) Beats Stock Market Upswing: What Investors Need to Know

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In the latest market close, Chubb (CB - Free Report) reached $297.40, with a +1.17% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 0.85%, while the tech-heavy Nasdaq appreciated by 0.31%.

Prior to today's trading, shares of the insurer had gained 11.13% over the past month. This has outpaced the Finance sector's loss of 4.63% and the S&P 500's loss of 7.69% in that time.

Investors will be eagerly watching for the performance of Chubb in its upcoming earnings disclosure. On that day, Chubb is projected to report earnings of $3.50 per share, which would represent a year-over-year decline of 35.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.14 billion, up 8.24% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $21.52 per share and a revenue of $60.31 billion, demonstrating changes of -4.4% and +7.27%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Chubb. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Chubb possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Chubb is currently being traded at a Forward P/E ratio of 13.66. This denotes a premium relative to the industry's average Forward P/E of 11.83.

It's also important to note that CB currently trades at a PEG ratio of 3.62. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Insurance - Property and Casualty industry held an average PEG ratio of 1.72.

The Insurance - Property and Casualty industry is part of the Finance sector. With its current Zacks Industry Rank of 37, this industry ranks in the top 15% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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