Yahoo Finance Why You Should Hold onto Travelers (TRV) Stock Right Now
Shares of The Travelers Companies Inc. TRV gained 3.7% over a one year period. Though the stock underperformed Zacks categorized Property and Casualty Insurance industry’s gain of 16.9%, the company’s expected long-term earnings growth is currently pegged at 7.7%. The Zacks Rank #3 (Hold) property and casualty insurer’s high retention rate, pricing gains, positive renewal rate changes, strong capital position, and inorganic growth position it well for the long term.
Travelers is a leading writer of auto and homeowners’ insurance that operates through independent agents. It also writes commercial U.S. property-casualty (P&C) insurance. With diverse product offerings, we believe that Travelers will continue to benefit from its strong market position and reap economies of scale.
The company remains focused on implementing pricing and other actions to continue increasing returns and more importantly, improving profitability. The successful implementation of pricing actions in the past has enabled the company to effectively enhance its portfolio with better performing classes of business.
We note that the company often undertakes strategic buyouts to expand its footprint, diversify operations and boost operational performance. Lately, Travelers agreed to buy Simply Business to gain access to the expanding microbusiness market in the U.S. and across the world.
Travelers boasts a solid capital position, which has enabled it to increase dividends for 12 straight years. The company now has $934 million left under its existing share repurchase authorization. The company generates strong cash flow and has solid holding company liquidity. It is also diligently working toward improving leverage ratios.
Stocks to Consider
Some better-ranked stocks from the insurance are American Financial Group, Inc. AFG, Argo Group International Holdings, Ltd. AGII and The Progressive Corporation PGR. Each of these stocks flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
American Financial Group engages primarily in P&C insurance with focus on specialized commercial products for businesses. Shares of the company gained 33.4% over the last one year.
Argo Group underwrites specialty insurance and reinsurance products in the property and casualty market worldwide. Its shares rallied 27.8% within a year.
Progressive offers personal and commercial P&C insurance, and other specialty P&C insurance and related services, primarily in the U.S. Shares of the company gained 11.2% in a year’s time.
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The Travelers Companies, Inc. (TRV): Free Stock Analysis Report
Progressive Corporation (The) (PGR): Free Stock Analysis Report
Argo Group International Holdings, Ltd. (AGII): Free Stock Analysis Report
American Financial Group, Inc. (AFG): Free Stock Analysis Report
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