Chubb Stock Trades Above 200-Day SMA: What Should Investors Do?

Core Insights - Chubb Limited (CB) is currently trading above its 200-day simple moving average, indicating a short-term bullish trend, with a share price of $285.61 as of June 11, 2025, down 6.9% from its 52-week high of $306.91 [1] Market Performance - Chubb has a market capitalization of $114.45 billion, with an average trading volume of 1.7 million shares over the last three months [3] - Year-to-date, Chubb's shares have gained 3.4%, underperforming the industry growth of 7.9% and the Finance sector's return of 5.7%, but outperforming the S&P 500's return of 2.1% [9] Valuation Metrics - The price-to-book value for Chubb is 1.62, slightly above the industry average of 1.56, with a Value Score of B [4] - The Zacks average price target for Chubb is $308.15 per share, indicating a potential upside of 7.6% from the last closing price [12] Growth Projections - The Zacks Consensus Estimate for Chubb's 2025 revenues is $59.74 billion, reflecting a year-over-year improvement of 6.2% [10] - Analysts have raised estimates for 2025 and 2026 earnings, with a 1.7% increase for 2025 earnings estimates and a 0.3% increase for 2026 [11] Financial Performance - Chubb has consistently surpassed earnings estimates in the last four quarters, with an average earnings surprise of 11.48% [14] - Return on equity for Chubb in the trailing 12 months was 12.3%, significantly better than the industry average of 7.8% [15] - Return on invested capital (ROIC) was 8%, also outperforming the industry average of 5.95% [16] Strategic Initiatives - Chubb is focusing on middle-market businesses and enhancing its core and specialty product offerings for long-term growth [21] - The company is pursuing strategic mergers and acquisitions, including the recent agreement to acquire Liberty Mutual's insurance businesses in Thailand and Vietnam, which is expected to improve premium revenues [22] - Chubb anticipates quarterly adjusted net investment income to range between $1.67 billion and $1.75 billion over the next six months, benefiting from improved operating cash flow [23] Dividend History - Chubb has a strong dividend history, having increased dividends for 31 consecutive years, with a planned hike of 6.5% this year, resulting in a dividend yield of 1.27%, which is better than the industry average of 0.2% [25]