Travelers Companies Inc. (TRV): Today's Featured Financial 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 Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day down 0.3%. By the end of trading, Travelers Companies fell $0.97 (-1.1%) to $84.10 on average volume. Throughout the day, 1,865,327 shares of Travelers Companies exchanged hands as compared to its average daily volume of 1,990,600 shares. The stock ranged in price between $83.73-$85.70 after having opened the day at $85.43 as compared to the previous trading day's close of $85.07. Other companies within the Financial sector that declined today were: Credit Suisse ( DGAZ), down 14.6%, Greenhill ( GHL), down 11.7%, Cash Store Financial Services ( CSFS), down 9.3% and Consumer Portfolio Services ( CPSS), down 8.0%.
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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 $32.6 billion and is part of the insurance industry. The company has a P/E ratio of 13.7, below the S&P 500 P/E ratio of 17.7. Shares are up 18.4% year to date as of the close of trading on Wednesday.

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.

On the positive front, China Housing & Land Development ( CHLN), down 11.4%, Stewardship Financial Corporation ( SSFN), down 8.3%, Marlin Business Services ( MRLN), down 7.4% and Plumas Bancorp ( PLBC), down 7.0% , were all gainers within the financial sector with American Realty Capital Properties ( ARCP) being today's featured financial sector leader.

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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