Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Chubb as such a stock due to the following factors:
- CB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $152.3 million.
- CB is down 2.4% today from today's close.
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More details on CB:
The Chubb Corporation, through its subsidiaries, provides property and casualty insurance to businesses and individuals. The stock currently has a dividend yield of 2%. CB has a PE ratio of 12.1. Currently there are 4 analysts that rate Chubb a buy, no analysts rate it a sell, and 11 rate it a hold.
The average volume for Chubb has been 1.1 million shares per day over the past 30 days. Chubb has a market cap of $21.9 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.64 and a short float of 1.5% with 2.10 days to cover. Shares are down 10% year-to-date as of the close of trading on Wednesday.
rates Chubb as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- CB's revenue growth has slightly outpaced the industry average of 8.8%. Since the same quarter one year prior, revenues slightly increased by 1.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although CB's debt-to-equity ratio of 0.21 is very low, it is currently higher than that of the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, CHUBB CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- CHUBB CORP has improved earnings per share by 6.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CHUBB CORP reported lower earnings of $5.67 versus $5.76 in the prior year. This year, the market expects an improvement in earnings ($7.98 versus $5.67).
- You can view the full Chubb Ratings Report.