Chubb(US:CB) ZACKS·2025-12-12 15:46Core Insights - Chubb Limited (CB) shares closed at $305.98, close to its 52-week high of $308.31, indicating strong investor confidence and potential for further price appreciation [1] - The stock is trading above its 50-day and 200-day simple moving averages, suggesting solid upward momentum [1] Market Performance - Chubb has a market capitalization of $121.99 billion, with an average trading volume of 1.8 million shares over the last three months [2] - The stock has gained 11.1% over the past year, outperforming the industry growth of 5.8% [3] Valuation Metrics - Chubb shares are trading at a forward price-to-book value of 1.55X, which is higher than the industry average of 1.48X, indicating an expensive valuation [4] Growth Projections - The Zacks Consensus Estimate for Chubb's 2025 earnings per share indicates a year-over-year increase of 5.1%, with revenues projected at $59.77 billion, reflecting a 6.3% improvement [9] - For 2026, earnings per share and revenues are expected to increase by 8.9% and 6.5%, respectively, compared to 2025 estimates [9] Analyst Sentiment - One of the 11 analysts covering Chubb has raised estimates for 2025 and 2026 in the past 30 days, leading to a 0.6% increase in the 2025 earnings estimate and a 0.2% increase for 2026 [10] Target Price - The Zacks average price target for Chubb is $310.65 per share, indicating a potential upside of 4.7% from the last closing price [11] Earnings Performance - Chubb has consistently surpassed earnings estimates in the last four quarters, with an average surprise of 13.37% [15] Return on Capital - Chubb's return on equity over the trailing 12 months was 12.9%, exceeding the industry average of 8% [16] - The return on invested capital (ROIC) was 8.5%, also better than the industry average of 6.2% [17] Strategic Initiatives - Chubb is focusing on middle-market expansion and enhancing core packages and specialty products, supported by recent acquisitions and premium gains [7][19] - The company is pursuing strategic mergers and acquisitions to diversify its portfolio and expand its geographic footprint [19] Investment Income - Chubb expects adjusted net investment income to be $1.775 billion in Q4 and $1.81 billion in Q1 2026, benefiting from improved operating cash flow [20] Dividend Policy - Chubb has a current dividend yield of 1.2%, higher than the industry average of 0.2%, with a recent 6.6% increase marking the 32nd consecutive year of dividend increases [23]