Why Travelers (TRV) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - Evaluates a company's financial health and future growth potential through earnings, sales, and cash flow analysis [4] Momentum Score - Targets stocks with upward or downward price trends, utilizing factors like recent price changes and earnings estimate revisions [4] VGM Score - Combines Value, Growth, and Momentum Scores to identify stocks with the most attractive overall characteristics [5] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to assist in portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [6][7] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [8] - Stocks with lower ranks but high Style Scores may still carry risks due to downward earnings forecasts [9] Company Spotlight: Travelers Companies Inc. (TRV) - Travelers, established in 1853, provides a range of property and casualty insurance services and holds a Zacks Rank of 2 (Buy) with a VGM Score of A [10] - The company has a Momentum Style Score of B, with shares increasing by 7.1% over the past month and upward earnings estimate revisions for fiscal 2024 [11]