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BARGAIN GROWTH: Chubb
Ticker: CB
Market Cap: $14.1 billion
PEG ratio: 0.27
Earnings Growth: 29%
Debt/equity ratio: 0.29

While Chubb has performed far worse than the S&P 500 this year, analysts think the property and casualty insurer is due for a turnaround. Premiums are down, but Chubb managed to eke out a respectable 15% return on equity last quarter and boosted renewals on its commercial insurance policies for the first time in five years. FBR Capital Markets analyst Bijan Moazami wrote in a note that the company is undervalued given its high quality investment portfolio and strong reserves.

It remains to be seen whether Chubb can gain significant market share from its battered competitors, but Moazami is optimistic. "We continue to believe Chubb is well capitalized and could benefit from the economic and financial turmoil, given its superior position in the market," he wrote.

--M.K.

NEXT: BARGAIN GROWTH: Cisco Systems

Last updated June 11 2009: 10:27 AM ET
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Criteria include PEG ratios (price/earnings ratio divided by earnings growth) below S&P 500's PEG rati of 2.09, long-term earnings growth equal to 7% or more, and a debt-to-equity ratio below 0.33. All data related to stock price as of June 1, 2009. Earnings growth based on Wall Street estimates for the next three to five years.
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