Chubb stock is completing a cup pattern that could pay off handsomely. Its earnings growth accelerated for at least the past four quarters, soaring 58% last quarter. On Tuesday, Chubb stock cleared a key technical benchmark, seeing its Relative Strength (RS) Rating jump into the 80-plus percentile with an improvement to 82, up from 76 the day before.
Chubb Stock Shows Unusual Strength
The 82 Relative Strength Rating means Chubb stock tops 82% of all stocks for price performance over the past year. Decades of market research show that the best-performing stocks often have an 80 or better RS Rating in the early stages of their moves.
Among other key ratings Chubb stock has a near-best 98 Composite Rating out of 99, a 94 Earnings Per Share Rating and a terrific A- Accumulation/Distribution Rating. The A- rating means that ETFs, mutual funds and other institutional investors are avid buyers of Chubb stock.
Looking For Winning Stocks? Try This Simple Routine
Chubb stock, which is on the IBD Big Cap 20 list, broke out earlier, but has fallen back below the prior 216.09 entry from a saucer with handle. While forming the cup pattern, Chubb dropped to a 183.40 low on March 24, then turned up.
Shares of the Swiss insurance company traded at about 213 Tuesday morning, up 16% from the March low and down fractionally for the day
Keep in mind that the most recent pattern is a later-stage base, and such bases are riskier than earlier stage bases.
Steady Earnings Growth Acceleration
Over the last three quarters earnings accelerated from 5% growth to 15%, 17% and then a 58% surge to $4.95 per share. Revenue grew 14% on a year-over-year basis last quarter, to $13.9 billion, easing from a 20% advance the prior period.
Chubb earns the No. 7 rank among its peers in the 64-stock Insurance-Property/Casualty/Title industry group. Everest Group and Fidelis Insurance are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
The proprietary IBD Relative Strength Rating tracks technical performance by showing how a stock's price movement over the last 52 weeks compares to that of other stocks on the major indexes.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
