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Read Introduction to 1 Peter


“Coming to Him as to a living stone, rejected indeed by men, but chosen by God and precious.”
but chosen by God
The “but” throws a contrast between men’s opinion and God’s opinion about Christ. In God’s eyes, Jesus is both tested and approved as genuine. 
“Chosen” means chosen out and selected (Matt 22:14; Lk 23:35; Rom. 16:13; Rev. 17:14; 1 Pet. 2:9). God picked him out among everyone else (Lk. 23:35). Even though men reject him, God views him as select. God elected Jesus to go to the cross. As a result of his work on the cross, we can share his election and destiny (Isa. 42:1). Jesus ranks with God. God put in a place of administrative priority. 
In the final analysis, it is God’s approval that is necessary, not man’s. 
and precious
“Precious” means to hold in honor, hold as very valuable or worthy. First Corinthians 3:12 talks about “precious stones.”
God holds Jesus in high status, and that demands that we both honor and respect him. The word “precious” means honorable. He is worthy of the esteem of God. He is also worthy in the judgment of all who believe in him.
God holds Jesus in high estimation.
If God holds Jesus in such honor, we should highly prize him as well.