Shares of Travelers (TRV Quick QuoteTRV - Free Report) have been strong performers lately, with the stock up 6.2% over the past month. The stock hit a new 52-week high of $288.95 in the previous session. Travelers has gained 18.8% since the start of the year compared to the 15.3% move for the Zacks Finance sector and the 9.8% return for the Zacks Insurance - Property and Casualty industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 16, 2025, Travelers reported EPS of $8.14 versus consensus estimate of $6.01 while it beat the consensus revenue estimate by 0.74%.

For the current fiscal year, Travelers is expected to post earnings of $24.71 per share on $48.83 in revenues. This represents a 14.5% change in EPS on a 5.11% change in revenues. For the next fiscal year, the company is expected to earn $26.17 per share on $50.5 in revenues. This represents a year-over-year change of 5.89% and 3.43%, respectively.

Valuation Metrics

While Travelers has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Travelers has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 11X. On a trailing cash flow basis, the stock currently trades at 5.1X versus its peer group's average of 13X. Additionally, the stock has a PEG ratio of 2.54. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Travelers currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Travelers meets the list of requirements. Thus, it seems as though Travelers shares could have a bit more room to run in the near term.

How Does TRV Stack Up to the Competition?

Shares of TRV have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Arch Capital Group Ltd. (ACGL Quick QuoteACGL - Free Report) . ACGL has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of A.

Earnings were strong last quarter. Arch Capital Group Ltd. beat our consensus estimate by 26.48%, and for the current fiscal year, ACGL is expected to post earnings of $9.50 per share on revenue of $18.72 billion.

Shares of Arch Capital Group Ltd. have gained 2.5% over the past month, and currently trade at a forward P/E of 10.11X and a P/CF of 9.05X.

The Insurance - Property and Casualty industry is in the top 7% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TRV and ACGL, even beyond their own solid fundamental situation.