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The Travelers Companies, Inc. (TRV) provides commercial and personal property and casualty insurance products and services in the United States and internationally. Valued at $49.59 billion by market cap. TRV specializes in operating through Business Insurance, Bond & Specialty Insurance, and Personal Insurance segments. Headquartered in New York, it is known for its comprehensive coverage options across commercial, specialty, and personal insurance markets.
The stock has outperformed the broader market considerably over the last year. TRV has gained 34.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied more than 28.3%. However, in 2024, TRV stock gained 14.9%, underperforming SPX’s 17.6% returns on a YTD basis.
Narrowing the focus, TRV has underperformed the Invesco KBW Property & Casualty Insurance ETF (KBWP) on a YTD basis. The ETF has gained 22.3% over this time frame.
Shares of TRV plunged 7.9% on Jul. 19, the day its Q2 results were released. TRV’s adjusted earnings of $2.51 per share beat the consensus estimate by 25.5%. However, revenue missed Wall Street estimates by 1%. On the same day, the stock market plunged due to the global IT outrage. However, TRV stayed in the green for most of the month following this decline.
For the current fiscal year, ending in December, analysts expect TRV to report EPS growth of 31.2% to $17.23 on a diluted basis. The company’s earnings surprise history is mixed. It surpassed the consensus estimate in two of the last four quarters but missed on two other occasions.
Among the 23 analysts covering TRV stock, the consensus rating is "Hold," lower than “Moderate Buy” two months ago. The current “Hold” rating is based on seven "Strong Buy" ratings, 14 "Holds," one “Moderate Sell,” and three “Strong Sells.”
On Aug. 19, Morgan Stanley analyst Bob Huang maintained a “Hold” rating on TRV and set a price target of $215, which indicates a downside potential of 1.8% from the current levels.
The mean price target of $225.62 represents a premium of 3% to TRV's current price. The Street-high price target of $250 suggests an upside potential of 14.2%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
