Knowing facts before you bet on it

Chubb (Cb) has recently been one of the most sought stocks on Zacks.com. Perhaps you would like to see some of the facts that could affect the performance of the stock at short notice.

Last month, this insurer's shares returned to -6.6% compared to the change of -0.8% of Zacks S&P 500 Composite. During this time, the Zacks Insurance – real estate and accident industry that CHUBB falls has lost 0.1%. The key question now is: What could be the future direction of the stock?

Although media reports or rumors about a significant change in the business prospects of a company generally lead to the fact that its shares lead to trend and an immediate change in price, there are always certain basic factors that ultimately advance the purchase and hate decision.

Instead of concentrating on anything else, we prioritize the evaluation of the change in the profit projection of a company at Zacks. This is due to the fact that we believe that the current value for its shares is determined by the cash value of his future profit current.

We essentially take a look at how analysts that cover the shares reveal their profit estimates in order to reflect the effects of the latest business trends. And if the profit estimates for a company rise, the current value for its shares increases. A higher atmosphere to be used than the current market price gives investors the interest for buying the share, which leads at a higher price. For this reason, empirical research shows a strong correlation between trends in the revisions of the yield estimate and short -term share price movements.

For the current quarter, Chubb is expected to make a profit of $ 5.88 per share, which indicates a change of +9.3% compared to the previous year. The Zacks Consensus estimate has changed in the past 30 days by -0.8%.

For the current financial year, the consensus estimate of $ 21.18 refers to a change of -5.9% compared to the previous year. In the past 30 days, this estimate has changed +1.3%.

For the next financial year, the consensus assessment of $ 25.30 shows a change of +19.4% compared to what Chubb is expected a year ago. In the past month, the estimate has changed +0.3%.

Our proprietary stock assessment tool, The Zacks Rank, offers a strong externally tested track record and offers a more conclusive picture of the price direction of a share at short notice, as it effectively uses the power of profits. Due to the size of the recent change in the consensus estimate and three other factors in connection with the profit estimates, Chubb Zacks ranked number 3 (hold) is assessed.

The following table shows the development of the company's 12-month consensus EPS EPS estimate:

12-month consensus EPS estimate for CB _12Monthepscharturl

Although the profit growth of a company is probably the best indicator of its financial health, not much happens if it cannot increase its income. It is almost impossible for a company to increase its income without increasing its sales over long periods of time. It is therefore crucial to know the potential sales growth of a company.

For ChubB, the consensus estimate for the current quarter of $ 14.88 billion shows a change of +7.4%compared to the previous year. For the current and next financial years, estimates of USD 60.01 billion and 63.84 billion USD +6.7% or +6.4% make changes.

Chubb reported sales of $ 13.67 billion in the last reported quarter, which corresponds to a change of +4.6%compared to the previous year. EPS of $ 3.68 comparable to $ 5.41 a year ago for the same period.

Compared to the Zacks Consensus estimate of 14.16 billion US dollars, the registered income is a surprise of -3.43%. The EPS surprise was +12.88%.

The company defeated consensus -epseps estimates in each of the following four quarters. During this period, the company only led consensus sales estimates.

Without taking into account the assessment of a share, no investment decision can be efficient. When predicting the future price performance of a share, it is crucial to determine whether the current price correctly reflects the internal value of the underlying business and the company's growth prospects.

During the comparison of the current values of the evaluation advantages of a company, such as price-to-profit (P/E), Price-to-Sales (P/S) and Price-to-Cash-Flow (P/CF), with its own historical values, to determine whether its shares are rather evaluated, overvalued or undervalued, the relative position is comparable to prices for the relative position.

The Zacks Value Style Score (part of the Zacks Style Scores Systems), which pays attention to the grade of stocks from A to F both traditional and unconventional valuation metrics (AA is better than a C; and so on) is rather helpful to identify whether a share is overrated, legally valued or temporarily accommodated.

Chubb is evaluated on this Front C, which points out that it is at level with his colleagues. Click here to display the values of some evaluation metrics that have driven this grade.

The facts discussed here and a lot of other information about Zacks.com could help determine whether it is worth paying attention to the Chubb market or not. However, the Zacks ranked 3rd indicate that it is in line with the broader market at short notice.

Would you like the latest recommendations from Zack's Investment Research? Today you can download 7 best stocks for the next 30 days. Click here to receive this free report

Chubb Limited (CB): Report on free stock analysis

This article was originally published in Zack's Investment Research (Zacks.com).

Zacks Investment Research

Leave a Comment Cancel reply