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Should Value Investors Buy The Travelers Companies (TRV) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

The Travelers Companies (TRV - Free Report) is a stock many investors are watching right now. TRV is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.72, while its industry has an average P/E of 29.01. Over the past year, TRV's Forward P/E has been as high as 17.36 and as low as 10.57, with a median of 11.66.

Investors should also note that TRV holds a PEG ratio of 1.14. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TRV's industry currently sports an average PEG of 2.91. Over the last 12 months, TRV's PEG has been as high as 1.71 and as low as 0.98, with a median of 1.07.

Finally, our model also underscores that TRV has a P/CF ratio of 4.90. 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 8.50. Within the past 12 months, TRV's P/CF has been as high as 5.35 and as low as 4.24, with a median of 4.79.

These are just a handful of the figures considered in The Travelers Companies's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TRV is an impressive value stock right now.


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