We recently published a list of 10 Best Very Cheap Stocks To Buy Right Now. In this article, we are going to take a look at where Chubb Limited (NYSE:CB) stands against other best very cheap stocks to buy right now.
The stock market had a mixed start to 2025 as the Chinese Deepseek AI model has put the U.S. AI giants on the back foot. However, the tech-heavy NASDAQ 100 index made a recovery after taking a hit and has surged over 5% year-to-date. In addition, the S&P 500 index has gained just over 4% so far in 2025.
READ ALSO: 10 Best Cheap Technology Stocks To Buy According to Analysts
Goldman Sachs Research’s chief US equity strategist, David Kostin, expects the US tariffs to negatively impact the S&P 500 EPS in 2025. Kostin cited that every five-percentage-point increase in the US tariff rate will reduce S&P 500 EPS by roughly 1-2%.
If the U.S. administration continues with the proposed tariff rates, a 25% tariff on imported goods from Mexico and Canada and an additional 10% tariff on imports from China would reduce S&P 500 EPS forecasts by approximately 2-3%, as per Goldman’s Research.
With the potential market risks and tariff threat from the Trump administration, cheap stocks with strong fundamentals can be a good option for investment.
At first glance, the market may seem overvalued, with the S&P 500 trading close to all-time highs, driven by tech giants and leading consumer stocks. However, some stocks have missed the broader market rally amid temporary challenges. These stocks have attractive forward P/E ratios and proven growth records.
Our Methodology
We used the Finviz screener to compile a list of 30 cheap stocks with a forward P/E ratio of under 15. We shortlisted the 10 best very cheap stocks to buy now based on the highest potential upside according to average analyst estimate, as of February 17. The very cheap stocks are ranked in ascending order of the average analyst upside.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of an insurance agent’s hand pointing to a marine insurance policy, highlighting the company’s expertise in marine coverage.
Chubb Limited (NYSE:CB)
P/E Ratio: 12.29
Average Analysts Upside: 15.68%
Chubb Limited (NYSE:CB), formerly known as ACE Limited, offers insurance and reinsurance products worldwide. The company’s products serve consumers with life insurance, accident and health, property and casualty (P&C), and reinsurance. Being one of the largest publicly traded P&C insurance companies, Chubb Limited operates in over 54 countries.
Chubb Limited (NYSE:CB) shares have dropped over 4% year-to-date as the company is facing a setback due to recent wildfire losses. The wildfires are estimated to reduce Chubb Limited’s FCF by $1.5 billion. Despite the challenges, the company has a history of successfully managing substantial losses, including from Hurricane Ian and Hurricane Milton.
In addition to the company’s solid cash position, generating around $4.57 billion in operating cash flow, Chubb Limited (NYSE:CB) reported net premiums of over $12 billion in Q4 2024. The net premiums increased 4% from a year ago, mainly driven by the P&C segment, which experienced a 7.7% rise year-over-year. The company posted a record net income of $9.27 billion for the full year 2024, with a P&C combined ratio of 86.6%. This consistent growth shows the company’s strong position in its core business. The company returned nearly $1.1 billion of capital to shareholders in Q4 2024, including $725 million in share repurchases.
Overall, CB ranks 10th on our list of best very cheap stocks to buy right now. While we acknowledge the potential of CB to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
