Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Travelers Companies ( TRV) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Travelers Companies as such a stock due to the following factors:
- TRV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $104.5 million.
- TRV is down 4.1% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in TRV with the Ticky from Trade-Ideas. See the FREE profile for TRV NOW at Trade-Ideas More details on TRV: 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. The stock currently has a dividend yield of 2.2%. TRV has a PE ratio of 11.3. Currently there are 8 analysts that rate Travelers Companies a buy, no analysts rate it a sell, and 12 rate it a hold. The average volume for Travelers Companies has been 1.9 million shares per day over the past 30 days. Travelers Companies has a market cap of $32.4 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.06 and a short float of 1.5% with 4.49 days to cover. Shares are down 2.4% year-to-date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Travelers Companies as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- Although TRV's debt-to-equity ratio of 0.26 is very low, it is currently higher than that of the industry average.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Net operating cash flow has slightly increased to $1,637.00 million or 9.06% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -23.48%.
- TRAVELERS COS INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, TRAVELERS COS INC increased its bottom line by earning $6.27 versus $3.34 in the prior year. This year, the market expects an improvement in earnings ($8.88 versus $6.27).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, TRAVELERS COS INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full Travelers Companies Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.