CB, MMC And ACE, Pushing Insurance Industry Downward

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 155 points (-1.0%) at 15,255 as of Wednesday, May 29, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 466 issues advancing vs. 2,548 declining with 68 unchanged.

The Insurance industry currently sits down 0.58 versus the S&P 500, which is down 0.89. A company within the industry that fell today was Erie Indemnity Company ( ERIE), up 4.99.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Chubb ( CB) is one of the companies pushing the Insurance industry lower today. As of noon trading, Chubb is down $0.84 (-1.0%) to $87.05 on average volume Thus far, 412,970 shares of Chubb exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $86.81-$87.47 after having opened the day at $87.32 as compared to the previous trading day's close of $87.89.

The Chubb Corporation, through its subsidiaries, provides property and casualty insurance to businesses and individuals. Chubb has a market cap of $22.8 billion and is part of the financial sector. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7. Shares are up 16.7% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Chubb a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Chubb as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, increase in net income, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Chubb Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, Marsh & McLennan Companies ( MMC) is down $0.34 (-0.8%) to $40.16 on light volume Thus far, 867,548 shares of Marsh & McLennan Companies exchanged hands as compared to its average daily volume of 2.7 million shares. The stock has ranged in price between $40.10-$40.48 after having opened the day at $40.26 as compared to the previous trading day's close of $40.50.

Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions in the areas of risk, strategy, and human capital. It operates in two segments, Risk and Insurance Services, and Consulting. Marsh & McLennan Companies has a market cap of $22.3 billion and is part of the financial sector. The company has a P/E ratio of 18.2, above the S&P 500 P/E ratio of 17.7. Shares are up 17.5% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Marsh & McLennan Companies a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Marsh & McLennan Companies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Marsh & McLennan Companies Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, ACE ( ACE) is down $0.63 (-0.7%) to $88.88 on average volume Thus far, 637,342 shares of ACE exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $88.60-$89.30 after having opened the day at $89.04 as compared to the previous trading day's close of $89.51.

ACE Limited, through its subsidiaries, provides a range of insurance and reinsurance products to insured's worldwide. ACE has a market cap of $30.5 billion and is part of the financial sector. The company has a P/E ratio of 11.5, below the S&P 500 P/E ratio of 17.7. Shares are up 12.5% year to date as of the close of trading on Tuesday. Currently there are 15 analysts that rate ACE a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates ACE as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, notable return on equity, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full ACE Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 5 stocks, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF ( KIE) while those bearish on the insurance industry could consider Proshares Short Financials ( SEF).

A reminder about TheStreet Ratings group: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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