Latest news with #TheTravelersCompaniesInc
Yahoo
29-05-2025
- Business
- Yahoo
Keefe Bruyette Raises Target as Travelers Companies (TRV) Divests Canadian Businesses
On Tuesday, May 27, The Travelers Companies Inc. (NYSE:TRV) announced an agreement to divest its personal insurance segment and most of its commercial insurance operations in Canada to Definity Financial Corp., a Canadian financial services company. The sale is valued at approximately $2.4 billion, implying an adjusted price-to-book value of 1.8 times, according to company data. However, after this deal, which is expected to close in the first quarter of 2026, The Travelers Companies will retain its Canadian surety business. A close-up image of an insurance policy with hands standing firmly on top, conveying security. Of the total proceeds, the company plans to use around $700 million for share buybacks in 2026, which are expected to be EPS accretive. The remaining proceeds will be used for operational and corporate purposes. Following the deal announcement, an analyst from Keefe Bruyette increased his price target on The Travelers Companies to $303 from $290 and reiterated his Outperform rating. The analyst was positive on the deal and expects higher return ratios to lead to better valuation multiples for the company. The Travelers Companies Inc. (NYSE:TRV) is a U.S.-based provider of property casualty insurance for auto, home, and business. While we acknowledge the potential of TRV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TRV and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
02-05-2025
- Business
- Yahoo
Is The Travelers Companies Inc. (TRV) the Best Dow Stock for the Next 12 Months?
We recently published a list of . In this article, we are going to take a look at where The Travelers Companies Inc. (NYSE:TRV) stands against other best and worst dow stocks for the next 12 months. The Dow Jones Industrial Average (DJIA), or the Dow, is a price-weighted index that has long been seen as a barometer of the health of the U.S. economy. After touching all-time highs in late November 2024, the index has corrected nearly 7% in 2025 (as of April 23) and is down 12% from its highs. Rightly so, the correction reflects several unfavourable developments, including economic uncertainties and geopolitical tensions weighing on economic growth. The market is expected to remain volatile as the trade and other aspects of the US administration's policy agenda play out. Amid this volatility, based on the potential for share price appreciation in the next 12 months, we have created a selection of the best and worst Dow stocks from the 30 Dow constituent stocks. If we analyse its trackable history from 1899, the Dow has fallen 7% or more on a single day twenty times. Of those, only seven occurred after the year 2000, and the 5.5% decline on April 5, 2025, doesn't count as one of those seven, or not even in the historical top twenty. So, technically, this correction was not as severe as earlier. From corrections post 2000, the sharp declines when Covid-19 struck were the most noticeable – Dow fell 7.8%, 10%, and 12% on 9, 12, and 16th March, respectively, and saw further significant declines in that year. That said, the current period remains one of the most confusing times for market participants, even for the larger players in the equity market, who remain uncertain about their estimates for the broader markets, such as the Dow. In a recent interview, Lauren Goodwin, Chief Market Strategist at New York Life Investments, emphasized that the fundamental picture remains cloudy and investors are still looking for clarity in macroeconomic fundamentals. Despite some positive economic data recently, policy uncertainty is limiting visibility. As more data is released, she believes markets are entering a sustained period of elevated volatility across equities and fixed income. In these testing times, investors should examine fundamentals more critically, preferring Dow stocks with earnings resilience, clear competitive advantages, and exposure to long-term, secular growth themes. On April 28, Stephanie Link, Hightower Advisors' chief investment strategist, shared her positive outlook on the stock market in an interview on CNBC. With major tech companies, consumer, and financial companies set to announce results, she believes that if corporate earnings remain strong, the recent market rebound could continue. Since early April, the market has recovered significantly, and she attributed the rally to better-than-expected profit margins and steady corporate performance. Although the prominent tech names aren't cheap in terms of valuation, she views the recent declines as long-term buying opportunities. While markets may remain volatile in the coming months, the best opportunities in the Dow over the next 12 months should come from stocks with strong pricing power and earnings momentum. Investors should stick to stocks with strong brands, recurring revenue models, and competitive moats, which enable them to navigate macro uncertainty. Since the Dow comprises large-cap companies across various industries, these stocks might perform better during sell-offs. To identify the best and worst Dow stocks, we began with the 30 constituent stocks of the DJIA Index. We then ranked these stocks in ascending order based on the consensus 1-year median potential upside. Additionally, we also include data on hedge funds holding stakes in these stocks, utilizing Insider Monkey's Q4 2024 hedge fund database to provide deeper insights into institutional investor trends. It is important to note here that the terms 'best' and 'worst' refer strictly to the relative upside potential and do not imply any fundamental strengths or weaknesses of the underlying are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here). A woman signing a policy document while a representative from the insurance company looks Travelers Companies Inc. (NYSE:TRV) provides commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals. The majority of its revenue comes from the domestic market. The company reported pretax catastrophe losses of $2.3 billion from the January California wildfires, which hurt its Q1 2025 results announced on April 16. This was higher than the $1.7 billion estimate the company had given in February. Despite this impact, quarterly financial performance was strong, with underlying underwriting income rising 32%, driven by strong net earned premiums of $10.7 billion. Core income of $443 million came in better than expectations. Street analysts were broadly optimistic after the company's strong results and long-term outlook, although some analysts highlighted concerns in the near term. William Blair analyst Adam Klauber maintained his Neutral rating on the stock as he sees reduced potential for earnings growth in 2025, but stabilization and better growth in 2026. On the other side, Keefe Bruyette analyst Meyer Shields increased his price target to $290 from $274, and maintained an Outperform rating. Analysts from Evercore ISI and Roth MKM also reiterated their confidence in the stock and maintained their Buy ratings. Overall, TRV ranks 21st on our list of best and worst dow stocks for the next 12 months. While we acknowledge the potential of Dow stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TRV but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
