In the last few trading sessions before it posted results, Chubb (CB) slumped from $290 to below $270. Shares snapped back after it posted quarterly results. The stock, whose dividend is low at 1.35%, might rise from here.
Chubb reported non-GAAP EPS of $7.49. Its combined ratio is even more impressive at 81%. In the quarter, Chubb said that it increased its stock buyback. It cited that shares traded below the intrinsic value. Chubb has strong earnings power, and it may increase its buyback activity. It will continue to build additional capital and the invested asset base. That increases shareholder value.
The second featured stock is General Motors (GM). Shares broke out after it reported results. It issued an upbeat profit guidance. It raised its earlier guidance of $8.25 to $10.00 a share to $9.75 to $10.50. Moreover, tariffs costing $4.5 billion are $500 million lower than its previous estimate.
Lockheed Martin (LMT) is the third featured stock pick. Shares peaked at $514 before the firm reported Q3 results. In Q3, Lockheed’s backlog of $179 billion was driven by several wins. CEO James Taiclet said that it won multiyear awards for PAC-3, JASSM/LRASM, and CH-53K. That totaled $30 billion. F-35 contracts amounted to $11 billion in backlog.
Expect Lockheed to offer strong guidance on growth at its next quarterly report in January. It will have more clarity on the defense industry’s health.
