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

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is The Travelers Companies (TRV - Free Report) . TRV is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.38. This compares to its industry's average Forward P/E of 26.22. Over the last 12 months, TRV's Forward P/E has been as high as 17.36 and as low as 10.11, with a median of 11.35.

TRV is also sporting a PEG ratio of 1.27. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TRV's PEG compares to its industry's average PEG of 2.53. Over the last 12 months, TRV's PEG has been as high as 2.38 and as low as 0.99, with a median of 1.14.

Finally, our model also underscores that TRV has a P/CF ratio of 4.92. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.95. TRV's P/CF has been as high as 4.97 and as low as 4.08, with a median of 4.45, all within the past year.

These are just a handful of the figures considered in The Travelers Companies's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TRV is an impressive value stock right now.


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