We recently compiled a list of the Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024. In this article, we are going to take a look at where Chubb Limited (NYSE:CB) stands against the other companies that hit $100 billion in market cap in 2024.
Jim Cramer, the host of Mad Money, recently discussed a number of companies that have surpassed $100 billion in market capitalization this year, noting how these companies seem to reflect the current market mood. According to Cramer, it used to be a significant achievement for a company to reach the $100 billion mark, as most companies would never attain that level of market cap.
READ ALSO 10 Best Jim Cramer Stocks to Buy According to Analysts and Jim Cramer’s Lightning Rounds: 12 Stocks Under the Spotlight
He emphasized the immense effort and determination required to achieve such a feat. However, Cramer pointed out that in today’s market, the $100 billion threshold has lost some of its significance, given the recent surge in stock valuations. He highlighted that, as of the market close last Friday, 18 companies had crossed the $100 billion mark in 2024, a notable increase that speaks to the current market dynamics.
Cramer acknowledged that stocks, like everything else, had to contend with inflation, which remains a persistent issue. He went on to say:
“I know we’re experiencing a heightened market, with expectations really running so hot that you can’t believe that a presidential rally, or, let’s say, an end-of-the-year rally and a stock shortage rally are all in play at once. Many of these stocks got clocked today as part of a sell-off that seemed to infect the year’s best performers. I don’t know how long it’ll last, maybe some great buying opportunities already.”
Cramer concluded that the massive influx of capital into the market is a clear driver behind the rise in companies reaching the $100 billion valuation.
“But bottom line: When you get this much money coming in, you can see how all these companies can reach $100 billion, creating a huge amount of wealth, at least on paper. One more reason why it wouldn’t be so bad if some of the winning investors in this market took something delicious off the table.”
Our Methodology
For this article, we compiled a list of 18 stocks that were discussed by Jim Cramer during the episode of Mad Money on December 9. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? 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)
Number of Hedge Fund Holders: 51
Cramer noted that Chubb Limited (NYSE:CB) stock has rallied in 2024 and said:
“It’s joined by Chubb Limited, the property casualty insurance kingpin, which was up 26%… The insurance business is on fire and we know from these egregious CPI numbers, one comes out this Wednesday, they just keep raising rates. These three are winners for certain.”
Chubb Limited (NYSE:CB) offers a wide range of insurance and reinsurance products, including coverage for commercial, personal, agricultural, and life insurance, as well as specialty reinsurance services.
Recently, AM Best affirmed Chubb Limited’s A++ (Superior) Financial Strength Rating and “aa+” Long-Term Issuer Credit Ratings, reflecting the company’s strong balance sheet, excellent operating performance, and global market leadership. Chubb’s solid capitalization, underwriting results, and diverse international presence contribute to its top-tier ratings, though some capital growth has been constrained by financial leverage and share repurchases.
AM Best noted that the company’s exceptional operating performance is driven by the group’s consistently profitable underwriting results, as evidenced by a combined ratio in the mid-to-high 80s, which significantly outperforms the industry averages for top-rated insurers. Ratings for other Chubb subsidiaries reflect similar strengths and support from the parent company.
For the first nine months, Chubb Limited’s (NYSE:CB) net income and core operating income reached record highs of $6.70 billion and $6.75 billion, reflecting increases of 16.9% and 13.8%, respectively. On a per-share basis, year-to-date net income and core operating income of $16.38 and $16.50 also set records, up 18.8% and 15.6%. During this period, P&C underwriting income totaled $4.28 billion, an 8.4% increase.
The company’s management has expressed confidence in the company’s ability to sustain strong growth in operating earnings and EPS, driven by P&C revenue growth, underwriting margins, investment income, and life income.
Overall CB ranks 14th on our list of the companies that hit $100 billion in market cap in 2024 according to Jim Cramer. While we acknowledge the potential of CB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
