Travelers Companies Inc. (TRV): Today's Featured Financial Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Travelers Companies ( TRV) pushed the Financial sector higher today making it today's featured financial winner. The sector as a whole closed the day up 0.5%. By the end of trading, Travelers Companies rose $1.07 (1.6%) to $69.79 on average volume. Throughout the day, 1.8 million shares of Travelers Companies exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in a price between $68.75-$69.82 after having opened the day at $68.86 as compared to the previous trading day's close of $68.72. Other companies within the Financial sector that increased today were: Paulson Capital ( PLCC), up 13.3%, Millennium India Acquisition Corporation ( SMCG), up 11.7%, Elbit Imaging ( EMITF), up 11.3%, and LSB Financial Corporation ( LSBI), up 10.2%.
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The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. Travelers Companies has a market cap of $26.65 billion and is part of the insurance industry. The company has a P/E ratio of 12.5, equal to the average insurance industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 16.1% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Travelers Companies a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Travelers Companies as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial sector could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial sector could consider Proshares Short Financials ( SEF).

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