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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
The Travelers Companies (TRV - Free Report) is a stock many investors are watching right now. TRV is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.33, while its industry has an average P/E of 28.46. TRV's Forward P/E has been as high as 17.36 and as low as 10.11, with a median of 11.35, all within the past year.
We also note that TRV holds a PEG ratio of 1.07. 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 2.68. 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 1.11.
Finally, we should also recognize that TRV has a P/CF ratio of 5.17. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TRV's current P/CF looks attractive when compared to its industry's average P/CF of 10.03. Over the past year, TRV's P/CF has been as high as 5.17 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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Are Investors Undervaluing The Travelers Companies (TRV) Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
The Travelers Companies (TRV - Free Report) is a stock many investors are watching right now. TRV is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.33, while its industry has an average P/E of 28.46. TRV's Forward P/E has been as high as 17.36 and as low as 10.11, with a median of 11.35, all within the past year.
We also note that TRV holds a PEG ratio of 1.07. 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 2.68. 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 1.11.
Finally, we should also recognize that TRV has a P/CF ratio of 5.17. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TRV's current P/CF looks attractive when compared to its industry's average P/CF of 10.03. Over the past year, TRV's P/CF has been as high as 5.17 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.