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Are Investors Undervaluing The Travelers Companies (TRV) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is The Travelers Companies (TRV - Free Report) . TRV is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.94, while its industry has an average P/E of 25.87. Over the last 12 months, TRV's Forward P/E has been as high as 14.22 and as low as 10.46, with a median of 11.99.

TRV is also sporting a PEG ratio of 1.18. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TRV's PEG compares to its industry's average PEG of 2.45. TRV's PEG has been as high as 3.53 and as low as 1.05, with a median of 2.31, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that The Travelers Companies is likely undervalued currently. And when considering the strength of its earnings outlook, TRV sticks out at as one of the market's strongest value stocks.


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