New York-based The Travelers Companies, Inc. (TRV) is a leading provider of commercial and personal property, and property casualty insurance for auto, home and business. Valued at $61.8 billion by market cap, the company’s diverse business lines offer its global customers a wide range of coverage sold primarily through independent agents and brokers.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and TRV perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the property & casualty insurance industry.
Despite its notable strength, TRV slipped 2.4% from its 52-week high of $280.70, achieved on Sep. 4. Over the past three months, TRV stock gained 2.3% underperforming the Nasdaq Composite’s ($NASX) 11.4% gains during the same time frame.
In the longer term, shares of TRV rose 13.7% on a YTD basis, outperforming NASX’s YTD gains of 13.1%. However, the stock climbed 13.6% over the past 52 weeks, underperforming NASX’s 29.3% returns over the last year.
To confirm the bullish trend, TRV has been trading above its 200-day moving average over the past year, with slight fluctuations. The stock is trading above its 50-day moving average since early August.
On Jul. 17, TRV shares closed up by 3.8% after reporting its Q2 results. Its revenue stood at $12.1 billion, up 7.4% year over year. The company’s adjusted EPS rallied 159.4% year over year to $6.51.
TRV’s rival, Cincinnati Financial Corporation (CINF) shares lagged behind the stock, with a 6.7% uptick on a YTD basis and 11.5% gains over the past 52 weeks.
Wall Street analysts are reasonably bullish on TRV’s prospects. The stock has a consensus “Moderate Buy” rating from the 26 analysts covering it, and the mean price target of $279.52 suggests a potential upside of 7.4% from current price levels.
On the date of publication, Neha Panjwani 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. This article was originally published on Barchart.com
