Travelers (TRV) closed the most recent trading day at $161.88, moving +0.31% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.22%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.22%.
Heading into today, shares of the insurer had lost 3.78% over the past month, outpacing the Finance sector's loss of 9.02% and the S&P 500's loss of 10.02% in that time.
Wall Street will be looking for positivity from Travelers as it approaches its next earnings report date. This is expected to be July 21, 2022. In that report, analysts expect Travelers to post earnings of $2.04 per share. This would mark a year-over-year decline of 40.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.07 billion, up 5.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.50 per share and revenue of $36.51 billion, which would represent changes of -3.16% and +5.37%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Travelers. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% higher. Travelers is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Travelers is currently trading at a Forward P/E ratio of 11.99. This represents a discount compared to its industry's average Forward P/E of 13.03.
Also, we should mention that TRV has a PEG ratio of 3.48. 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. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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