Slow and Steady Wins the Race for This Insurance Stock

• Chubb (CB) is trading at new 20-year highs and has strong technical momentum.
• Shares are up 13% over the past year, making it a slow-and-steady insurance stock.
• CB maintains a 100% technical “Buy” opinion from Barchart.
• Analysts and individual investors are largely bullish on the stock with price targets as high as $426. 

Today’s Featured Stock

Valued at $123 billion, Chubb (CB) is the world’s largest publicly traded property and casualty insurance company. Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation CB checks those boxes. Since the Trend Seeker signaled a new “Buy” on Nov. 4, the stock has gained 8.18%.

Barchart Technical Indicators for Chubb

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Chubb scored a new all-time high of $315.08 on Dec. 29.

• CB has a Weighted Alpha of +15.78.
• Chubb has a 100% “Buy” opinion from Barchart.
• The stock gained 13.34% over the past year.
• CB has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $308.66 with a 50-day moving average of $296.53.
• Chubb made 13 new highs and gained 4.88% in the last month.
• Relative Strength Index (RSI) is at 56.41.
• There’s a technical support level around $311.34.

Don’t Forget the Fundamentals

• $123 billion market capitalization.
• 13.47x trailing price-earnings ratio.
• 1.26% dividend yield.
• Revenue is expected to grow 4.43% this year and another 6.03% next year.
• Earnings are estimated to increase 5.07% this year and an additional 10.98% next year.

Analyst and Investor Sentiment on Chubb

• Wall Street analysts tracked by Barchart have given 9 “Strong Buy,” 1 "Moderate Buy," 14 “Hold,” 1 “Moderate Sell,” and 1 “Strong Sell” opinions on the stock with price targets between $276 and $364.
• Value Line ranks the stock “Above Average” with price targets between $269 and $426.
• CFRA’s MarketScope Advisor rates the stock as “Buy” with a price target of $342.
• Morningstar thinks with the stock’s recent runup, it’s overvalued with a Fair Value of $267.
• 837 investors following the stock on Motley Fool think it will beat the market, while 105 think it won’t.
• 37,760 investors are monitoring the stock on Seeking Alpha, which rates the stock a “Hold.”
• Shorth interest is low at 0.89% of the float.

The Bottom Line on Chubb

Wall Street analysts and individual investors agree on Chubb. Both predict this will be a slow and steady gainer.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.