5 Undervalued European Stocks For The Rest of 2022

1. Chubb Limited (NYSE:CB)

Number of Hedge Fund Holders: 35

P/E Ratio as of November 7: 14.58

Chubb Limited (NYSE:CB) is a Switzerland-based company that provides insurance and reinsurance products worldwide. On October 25, the company reported a Q3 non-GAAP EPS of $3.17, beating analysts’ estimates by $0.56. The net premiums of $11.54 billion climbed 15.4% year-over-year, topping Street consensus by $830 million. Operating cash flow was $3.43 billion for the third quarter and a record $8.59 billion year-to-date.

On October 27, Raymond James analyst C. Gregory Peters raised the price target on Chubb Limited (NYSE:CB) to $270 from $260 and maintained a Strong Buy rating on the shares following the Q3 results. The analyst believes Chubb Limited (NYSE:CB) is well-positioned to achieve improving underlying results, given several years of solid rate increases as well as the outlook for pricing to remain in-line or ahead of loss cost trends through at least the end of this year. 

According to Insider Monkey’s data, 35 hedge funds were bullish on Chubb Limited (NYSE:CB) at the end of June 2022, compared to 31 funds in the prior quarter. Andreas Halvorsen’s Viking Global is the biggest position holder in the company, with 3.7 million shares worth $742 million. 

Here is what Aristotle Capital Management Value Equity has to say about Chubb Limited (NYSE:CB) in its Q1 2022 investor letter:

“Our investment in Chubb began in the fourth quarter of 2015, shortly after ACE Limited announced it would acquire the Chubb Corporation, creating the largest global property and casualty insurance company by underwriting income. During our nearly seven-year holding period, the company’s combination progressed leading to the realization of main catalysts we had identified. These included cost savings, broadened product offerings and an expanded customer base, as well as enhanced distribution capabilities and improved pricing due to scale. In addition, Chubb successfully grew its profitable high-net-worth personal lines. While we still consider Chubb to be a high-quality business, few catalysts remain after what was, in our opinion, a remarkable run of successful business execution. As such, we decided to step aside in favor of what we believe to be a more optimal investment in Blackstone.”

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