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Travelers (TRV) Outpaces Stock Market Gains: What You Should Know

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Travelers (TRV - Free Report) closed at $171.18 in the latest trading session, marking a +1.21% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.06%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 0.4%.

Heading into today, shares of the insurer had lost 5.02% over the past month, outpacing the Finance sector's loss of 9.62% and the S&P 500's loss of 8.3% in that time.

Wall Street will be looking for positivity from Travelers as it approaches its next earnings report date. This is expected to be July 21, 2022. In that report, analysts expect Travelers to post earnings of $3.89 per share. This would mark year-over-year growth of 12.75%. Meanwhile, our latest consensus estimate is calling for revenue of $9.07 billion, up 5.12% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.50 per share and revenue of $36.51 billion. These totals would mark changes of -3.16% and +5.37%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Travelers. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Travelers is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that Travelers has a Forward P/E ratio of 12.53 right now. Its industry sports an average Forward P/E of 13.86, so we one might conclude that Travelers is trading at a discount comparatively.

We can also see that TRV currently has a PEG ratio of 3.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TRV's industry had an average PEG ratio of 1.8 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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