Travelers Companies Inc. (TRV): Today's Featured Insurance Laggard

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 Insurance industry lower today making it today's featured Insurance laggard. The industry as a whole closed the day down 2.2%. By the end of trading, Travelers Companies fell $1.76 (-2.2%) to $79.25 on average volume. Throughout the day, 2.4 million shares of Travelers Companies exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $79.25-$81 after having opened the day at $81 as compared to the previous trading day's close of $81.01. Other companies within the Insurance industry that declined today were: EMC Insurance Group ( EMCI), down 7.9%, Federated National ( FNHC), down 7.8%, Aegon ( AEG), down 6.8%, and ING Groep N.V ( ING), down 6.8%.
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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 $30.38 billion and is part of the financial sector. The company has a P/E ratio of 12.8, below the S&P 500 P/E ratio of 17.7. Shares are up 12.8% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Travelers Companies a buy, no analysts rate it a sell, and nine 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, revenue growth, 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 sub par growth in net income.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF ( KIE) while those bearish on the insurance industry could consider Proshares Short Financials ( SEF).

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