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Are Investors Undervaluing The Travelers Companies (TRV) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.6, while its industry has an average P/E of 27.78. Over the last 12 months, TRV's Forward P/E has been as high as 14.64 and as low as 11.13, with a median of 12.44.
Investors will also notice that TRV has a PEG ratio of 2.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TRV's PEG compares to its industry's average PEG of 3.91. Within the past year, TRV's PEG has been as high as 4.80 and as low as 1.01, with a median of 2.83.
Finally, we should also recognize that TRV has a P/CF ratio of 4.84. 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 P/CF compares to its industry's average P/CF of 12.43. Over the past year, TRV's P/CF has been as high as 5.29 and as low as 4.23, with a median of 4.74.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Universal Insurance Holdings (UVE - Free Report) . UVE is a Zacks Rank of #1 (Strong Buy) stock with a Value score of A.
Furthermore, Universal Insurance Holdings holds a P/B ratio of 1.58 and its industry's price-to-book ratio is 1.50. UVE's P/B has been as high as 1.89, as low as 1.19, with a median of 1.54 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that The Travelers Companies and Universal Insurance Holdings are likely undervalued currently. And when considering the strength of its earnings outlook, TRV and UVE sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing The Travelers Companies (TRV) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.6, while its industry has an average P/E of 27.78. Over the last 12 months, TRV's Forward P/E has been as high as 14.64 and as low as 11.13, with a median of 12.44.
Investors will also notice that TRV has a PEG ratio of 2.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TRV's PEG compares to its industry's average PEG of 3.91. Within the past year, TRV's PEG has been as high as 4.80 and as low as 1.01, with a median of 2.83.
Finally, we should also recognize that TRV has a P/CF ratio of 4.84. 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 P/CF compares to its industry's average P/CF of 12.43. Over the past year, TRV's P/CF has been as high as 5.29 and as low as 4.23, with a median of 4.74.
If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Universal Insurance Holdings (UVE - Free Report) . UVE is a Zacks Rank of #1 (Strong Buy) stock with a Value score of A.
Furthermore, Universal Insurance Holdings holds a P/B ratio of 1.58 and its industry's price-to-book ratio is 1.50. UVE's P/B has been as high as 1.89, as low as 1.19, with a median of 1.54 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that The Travelers Companies and Universal Insurance Holdings are likely undervalued currently. And when considering the strength of its earnings outlook, TRV and UVE sticks out as one of the market's strongest value stocks.