Travelers Cos. (TRV) reports earnings, stock rallies

NYSE: TRV | The Travelers Companies, Inc. Common Stock News, Ratings, and Charts

TRV – Travelers released quarterly earnings of $2.83 per share, beating the Zacks Consensus Estimate of $2.76 per share.

Travelers (TRV) came out with quarterly earnings of $2.83 per share, beating the Zacks Consensus Estimate of $2.76 per share. This compares to earnings of $2.46 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 2.54%. A quarter ago, it was expected that this insurer would post earnings of $1.98 per share when it actually produced earnings of $2.13, delivering a surprise of 7.58%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Travelers, which belongs to the Zacks Insurance – Property and Casualty industry, posted revenues of $7.62 billion for the quarter ended March 2019, surpassing the Zacks Consensus Estimate by 0.47%. This compares to year-ago revenues of $7.30 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Travelers shares have added about 13.5% since the beginning of the year versus the S&P 500’s gain of 15.7%.

What’s Next for Travelers?

While Travelers has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Travelers was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.46 on $7.73 billion in revenues for the coming quarter and $11.11 on $31.06 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance – Property and Casualty is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.


Travelers Cos. Inc. shares closed at $138.93 on Thursday, up $3.06 (+2.25%). Year-to-date, TRV has gained 16.70%, versus a 16.56% rise in the benchmark S&P 500 index during the same period.

TRV currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #5 of 23 stocks in the Insurance – Life category.


This article is brought to you courtesy of Yahoo! Finance.

9 "Must Own" Growth Stocks For 2019

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

Top Stories on StockNews.com

NASDAQ: AAPL | Apple Inc. News, Ratings, and Charts

Barclays predicts just a few changes made to Apple's (AAPL) iPhone

Barclays said the new phones with have a third camera lens on the back, backing up previous reports about the next iPhone
NASDAQ: GOOGL | Alphabet Inc. - Class A Common Stock News, Ratings, and Charts

Nomura Instinet says Alphabet, Inc. (GOOGL) could lose $400 million due to Huawei ban

Nomura Instinet analyst Mark Kelley reiterated a Buy rating on Alphabet with a $1,300 price target.
NYSE: LUV | Southwest Airlines Company Common Stock News, Ratings, and Charts

Southwest Airlines (LUV) won't charge passengers for switching flights to avoid Boeing's 737 Max

Regulators grounded the planes worldwide in March after two fatal crashes within five months of one another.
NYSE: BA | Boeing Company (The) Common Stock News, Ratings, and Charts

The SEC announces investigation into Boeing Co.(BA)

Boeing shares have lost 1% in the past 12 months.
NASDAQ: AAPL | Apple Inc. News, Ratings, and Charts

Wedbush defends Apple's (AAPL) stock amidst trade-war

Daniel Ives maintained an Outperform rating on Apple with a $235 price target.

Read More Stories


More The Travelers Companies, Inc. Common Stock (TRV) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All TRV News
Page generated in 1.153 seconds.