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Should Value Investors Buy The Travelers Companies (TRV) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is The Travelers Companies (TRV - Free Report) . TRV is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.83, while its industry has an average P/E of 26.12. TRV's Forward P/E has been as high as 14.22 and as low as 10.38, with a median of 11.81, all within the past year.

Investors will also notice that TRV has a PEG ratio of 1.14. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TRV's PEG compares to its industry's average PEG of 2.50. Over the past 52 weeks, TRV's PEG has been as high as 2.59 and as low as 1.04, with a median of 1.30.

Finally, investors should note that TRV has a P/CF ratio of 4.38. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TRV's P/CF compares to its industry's average P/CF of 7.69. Within the past 12 months, TRV's P/CF has been as high as 4.99 and as low as 4.09, with a median of 4.48.

These are just a handful of the figures considered in The Travelers Companies's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TRV is an impressive value stock right now.


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