Chubb's Underwhelming Performance

Chubb (CB) Ascends, but Remains Behind Market: Some Facts to Note

Chubb (CB) shares have been on the rise lately, but the insurer's performance has been somewhat lackluster compared to the broader market. Here are some key points to note:

Recent Performance: Over the past month, Chubb's stock has gained 2.3%, outpacing the S&P 500's 1.3% rise. However, the insurer's year-to-date (YTD) return of 6.1% trails the S&P 500's 9.1%.

Earnings: Chubb reported its Q2 2022 earnings on July 14, beating estimates by 3.3%. The insurer's adjusted earnings per share (EPS) came in at $3.38, surpassing the Zacks Consensus Estimate of $3.24.

Revenue: Chubb's Q2 2022 revenue of $3.45 billion missed the Zacks Consensus Estimate of $3.52 billion. However, the insurer's premium growth was strong, with a 4.5% increase year-over-year.

Guidance: Chubb maintained its full-year 2022 guidance, expecting adjusted EPS in the range of $14.85 to $15.45. The insurer also projected a 3-5% increase in net premiums written for the full year.

Valuation: Chubb's forward P/E ratio of 14.5 is slightly higher than the industry average of 14.2. The insurer's P/B ratio of 1.3 is also slightly higher than the industry average of 1.2.

Outlook: Despite the recent uptick, Chubb's stock remains somewhat behind the market. The insurer's valuation multiples are slightly higher than the industry average, which may indicate that investors are not fully pricing in the company's growth potential. However, Chubb's strong premium growth and solid earnings performance suggest that the stock may have further to run.