Chubb Upgraded to Strong Buy - Analyst Blog
April 09 2013 - 4:30AM
Zacks
On Apr 9, 2013, Zacks Investment Research upgraded The
Chubb Corporation (CB) to a Zacks Rank #1 (Strong
Buy).
Why the Upgrade?
Chubb is currently on a high, driven by its capital deployment
policy, rating affirmation and strong earnings expectations for the
first quarter of 2013. As a result of the positive momentum
provided by these factors, the company’s share prices are
soaring.
On Mar 8, credit rating agency A.M. Best reiterated the issuer
credit rating of “aa-”, all long-term debt and indicative ratings
and the “AMB-1+” rating on the commercial paper of Chubb. The
rating action came on the back of the company’s consistent
operating profitability, maintenance of superior risk-adjusted
capital, a strong brand name, disciplined underwriting practices,
low debt level and a niche presence in the specialty and personal
lines business segment.
Additionally, on Feb 28, the board of directors of Chubb
approved a 7.3% increase in its quarterly dividend. Earlier, on Jan
31, the board also approved a new $1.3 billion share repurchase
program.
Chubb also has a strong earnings trend. The company reported
positive earning surprise in all four quarters in 2012, with an
average surprise of 49.1%.
Moreover, the Zacks Consensus Estimate for the first-quarter
earnings is $1.69 per share, with an Earnings ESP (Read: Zacks
Earnings ESP: A Better Method) of +8.28%. Our proven model shows
that the property & casualty insureris likely to beat earnings
in the first quarter of 2013 because it has a right combination of
a positive Earnings ESP and a Zacks Rank #1. Chubb is expected to
release its financial results for the first quarter of 2013 after
the closing bell on Apr 25.
Other Stocks to Consider
Other stocks in the property and casualty insurance sector that
are worth a look are Arch Capital Group Ltd.
(ACGL), Aspen Insurance Holdings Ltd. (AHL) and
AXIS Capital Holdings Limited (AXS). All these are
Zacks Rank #1 (Strong Buy) companies.
ARCH CAP GP LTD (ACGL): Free Stock Analysis Report
ASPEN INS HLDGS (AHL): Free Stock Analysis Report
AXIS CAP HLDGS (AXS): Free Stock Analysis Report
CHUBB CORP (CB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Aspen Insurance (NYSE:AHL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Aspen Insurance (NYSE:AHL)
Historical Stock Chart
From Jul 2023 to Jul 2024