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Travelers (TRV) Gains As Market Dips: What You Should Know

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In the latest trading session, Travelers (TRV - Free Report) closed at $179.04, marking a +0.68% move from the previous day. This change outpaced the S&P 500's 0.63% loss on the day. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 0.15%.

Coming into today, shares of the insurer had gained 4.55% in the past month. In that same time, the Finance sector gained 2.05%, while the S&P 500 gained 0.89%.

Investors will be hoping for strength from Travelers as it approaches its next earnings release. In that report, analysts expect Travelers to post earnings of $2.04 per share. This would mark a year-over-year decline of 40.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.07 billion, up 5.12% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.50 per share and revenue of $36.51 billion, which would represent changes of -3.16% and +5.37%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Travelers. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.19% higher within the past month. Travelers is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Travelers has a Forward P/E ratio of 13.17 right now. This represents a discount compared to its industry's average Forward P/E of 13.82.

Investors should also note that TRV has a PEG ratio of 3.82 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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