Trade-Ideas: Chubb (CB) Is Today's New Lifetime High Stock

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 Chubb ( CB) as a new lifetime high 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 $75.2 million.
  • CB has traded 709,424 shares today.
  • CB is trading at a new lifetime high.

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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 12.7. Currently there are 6 analysts that rate Chubb a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Chubb has been 1.0 million shares per day over the past 30 days. Chubb has a market cap of $22.9 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.64 and a short float of 1.7% with 5.47 days to cover. Shares are up 18.9% year to date as of the close of trading on Friday.

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

TheStreet Quant Ratings rates Chubb as a buy. 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, increase in stock price during the past year, increase in net income and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues slightly increased by 3.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CB's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 43.3% when compared to the same quarter one year prior, rising from $404.00 million to $579.00 million.
  • CHUBB CORP has improved earnings per share by 49.3% 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 ($7.50 versus $5.67).

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

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