Are Investors Undervaluing Chubb Limited (CB) Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Chubb Limited (CB). CB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.26, which compares to its industry's average of 24.28. Over the last 12 months, CB's Forward P/E has been as high as 16.31 and as low as 10.42, with a median of 13.51.

Investors should also note that CB holds a PEG ratio of 1.13. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CB's PEG compares to its industry's average PEG of 2.27. Over the last 12 months, CB's PEG has been as high as 1.63 and as low as 1.04, with a median of 1.35.

Finally, our model also underscores that CB has a P/CF ratio of 10.32. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CB's P/CF compares to its industry's average P/CF of 24.68. Within the past 12 months, CB's P/CF has been as high as 11.07 and as low as 8.14, with a median of 9.91.

If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Stewart Information Services (STC). STC is a # 2 (Buy) stock with a Value score of A.

Stewart Information Services sports a P/B ratio of 0.85 as well; this compares to its industry's price-to-book ratio of 1.33. In the past 52 weeks, STC's P/B has been as high as 1.77, as low as 0.84, with a median of 1.15.

Value investors will likely look at more than just these metrics, but the above data helps show that Chubb Limited and Stewart Information Services are likely undervalued currently. And when considering the strength of its earnings outlook, CB and STC sticks out as one of the market's strongest value stocks.

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Chubb Limited (CB) : Free Stock Analysis Report
 
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