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

Chubb Limited CB has been trading above its 200-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of Oct. 8, 2025, was $287.10, down 6.4% from its 52-week high of $306.91.The 200-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.  Image Source: Zacks Investment ResearchWith a market capitalization of $114.46 billion, the average volume of shares traded in the last three months was 1.8 million.CB’s Attractive ValuationShares of Chubb are trading at a discount compared with the Zacks Property and Casualty Insurance industry. Its forward price-to-book value of 1.54X is lower than the industry average of 1.58X, the Finance sector’s 4.32X, and the Zacks S&P 500 Composite’s 8.8X. The insurer has a Value Score of B.Shares of The Travelers Companies, Inc. TRV, W.R. Berkley Corporation WRB, and Kinsale Capital Group, Inc. KNSL are trading at a multiple higher than the industry average.Image Source: Zacks Investment ResearchPrice PerformanceShares of Chubb Limited have risen 1.5% in the past year compared with the industry’s growth of 9%.Image Source: Zacks Investment ResearchCB’s Growth Projection EncouragesThe Zacks Consensus Estimate for CB’s 2025 revenues is pegged at $59.38 billion, implying a year-over-year improvement of 5.6%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 17.6% and 6.3%, respectively, from the corresponding 2025 estimates. The Zacks Consensus Estimate for 2025 earnings has moved up 0.2% in the past 60 days, and for 2026, the same has moved north 0.07% in the same time frame.Target Price Reflects Potential UpsideBased on short-term price targets offered by 23 analysts, the Zacks average price target is $304.61 per share. The average indicates a potential 5.31% upside from the last closing price.Impressive Earnings Surprise History of CBChubb Limited’s bottom line surpassed earnings estimates in each of the last four quarters, the average being 10.85%.CB’s Favorable Return on CapitalReturn on equity in the trailing 12 months was 12.3%, better than the industry average of 7.6%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders.Also, return on invested capital (ROIC) has been increasing over the last few quarters amid capital investments made over the same time frame. This reflects CB’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 8%, better than the industry average of 5.8%.Factors Benefiting CB StockChubb Limited remains focused on capitalizing on the potential of middle-market businesses (both domestic and international) as well as enhancing traditional core packages and specialty products for long-term growth. In its efforts to accelerate growth, Chubb Limited is also making strategic investments in various initiatives. CB pursues strategic mergers and acquisitions to diversify its portfolio, add capabilities and synergies, and expand its geographic footprint. Recently, Chubb Limited agreed to acquire the insurance businesses of Liberty Mutual in Thailand and Vietnam. Acquisitions have also improved premium revenues. Premiums should also benefit from commercial P&C rate increases, new business, and strong renewal retention. An impressive inorganic growth story helps to achieve a higher long-term return on equity. Though the Fed has started lowering the interest rate, investment income should benefit from improved operating cash flow. Chubb Limited expects the quarterly adjusted net investment income to have a run rate between $1.72 billion and $1.74 billion in the third quarter of 2025.Chubb Limited has a strong capital position and sufficient cash-generation capabilities, which support wealth distribution to shareholders and growth initiatives. Being a P&C insurer, CB is exposed to catastrophe events, which induce volatility in underwriting profitability and affect the combined ratio. Given the uncertainty surrounding the magnitude of cat loss, higher losses could drain earnings. Also, Chubb’s leverage and times interest earned compare unfavorably with the industry.End NotesChubb Limited’s market-leading position, compelling portfolio, strong renewal retention, positive rate increases, solid capital position, and better return on capital pave the way for long-term growth. The strong capital and liquidity position enable Chubb to distribute wealth to its shareholders via share buybacks and dividend payouts. The company’s current dividend yield of 1.4% is better than the industry average of 0.3%. The recent 6.6% increase in dividends marks the 32nd straight year of dividend increase. Chubb has a solid track record of dividend hikes, with the metric witnessing a 10-year CAGR of 3.8%. This makes the stock an attractive pick for investors looking for a safe and steady flow of cash. However, given its premium valuation and unfavorable leverage and times interest earned, we prefer to stay cautious on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Travelers Companies, Inc. (TRV): Free Stock Analysis Report Chubb Limited (CB): Free Stock Analysis Report W.R. Berkley Corporation (WRB): Free Stock Analysis Report Kinsale Capital Group, Inc. (KNSL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks