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Should Value Investors Buy The Travelers Companies (TRV) Stock?
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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now 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 11.99, while its industry has an average P/E of 27.38. Over the past 52 weeks, TRV's Forward P/E has been as high as 17.36 and as low as 10.11, with a median of 11.35.
We also note that TRV holds a PEG ratio of 1.04. 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 currently sports an average PEG of 2.83. Over the last 12 months, TRV's PEG has been as high as 2.24 and as low as 0.99, with a median of 1.13.
Finally, investors should note that TRV has a P/CF ratio of 4.95. 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. TRV's current P/CF looks attractive when compared to its industry's average P/CF of 9.49. Over the past year, TRV's P/CF has been as high as 5 and as low as 4.08, with a median of 4.45.
These are only a few of the key metrics included in The Travelers Companies's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TRV looks like an impressive value stock at the moment.
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Should Value Investors Buy The Travelers Companies (TRV) Stock?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now 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 11.99, while its industry has an average P/E of 27.38. Over the past 52 weeks, TRV's Forward P/E has been as high as 17.36 and as low as 10.11, with a median of 11.35.
We also note that TRV holds a PEG ratio of 1.04. 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 currently sports an average PEG of 2.83. Over the last 12 months, TRV's PEG has been as high as 2.24 and as low as 0.99, with a median of 1.13.
Finally, investors should note that TRV has a P/CF ratio of 4.95. 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. TRV's current P/CF looks attractive when compared to its industry's average P/CF of 9.49. Over the past year, TRV's P/CF has been as high as 5 and as low as 4.08, with a median of 4.45.
These are only a few of the key metrics included in The Travelers Companies's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TRV looks like an impressive value stock at the moment.