How Is Travelers Companies' Stock Performance Compared to Other Insurance Stocks?
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New York-based the Travelers Companies, Inc. (TRV) operates a holding company focused on providing commercial and personal property & casualty insurance products and services. Valued at $58.4 billion by market cap, Travelers operates through Business Insurance, Bond & Specialty Insurance, and Personal Insurance segments.
Companies worth $10 billion or more are generally described as “large-cap stock,” Travelers fits this bill perfectly. Given the company's decades long history and extensive operations, its valuation above this mark is unsurprising.
Travelers touched its all-time high of $269.55 on Oct. 18, 2024, and is currently trading 4.8% below that peak. TRV stock gained 3.6% over the past three months, outperforming the Invesco KBW Property & Casualty Insurance ETF’s (KBWP) 34 basis point dip during the same time frame.
Over the longer term, Travelers' performance looks even more impressive. TRV stock soared 7.4% over the past six months and 17.5% over the past 52 weeks, outperforming the KBWP’s 4.2% gains over the past six months and 15.5% returns over the past year.
To confirm the uptrend, Travelers has traded consistently above its 200-day moving average over the past year and above its 50-day moving average since late February.
Travelers Companies’ stock prices gained 3.2% after the release of its impressive Q4 results on Jan. 22. The company’s financials were positively impacted by strong premium inflows, solid underwriting margins, and high net investment income. Travelers observed a notable 7.5% year-over-year increase in net written premiums to $10.7 billion and delivered a solid 9.9% year-over-year growth in total revenues to more than $12 billion, which exceeded the Street’s expectations. Furthermore, the company reported a staggering 30.2% year-over-year growth in core income to $2.1 billion and its core income of $9.15 per share surpassed the consensus estimates by 39.3%, which boosted investor confidence.
Travelers has also outperformed its competitor Chubb Limited’s (CB) 66 basis point uptick over the past six months, while marginally lagging CB’s 17.7% gains over the past year.
Among the 26 analysts covering the TRV stock, the consensus rating is a “Moderate Buy.” Its mean price target of $271.09 represents a modest 5.6% premium to current price levels.
On the date of publication, Aditya Sarawgi 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.