The Travelers Companies, Inc. (TRV) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Travelers (TRV) has shown strong stock performance, with a 6.2% increase over the past month and an 18.8% gain since the start of the year, outperforming both the Zacks Finance sector and the Zacks Insurance - Property and Casualty industry [1] Financial Performance - In the last earnings report on October 16, 2025, Travelers reported an EPS of $8.14, significantly exceeding the consensus estimate of $6.01, and beat the consensus revenue estimate by 0.74% [2] - For the current fiscal year, Travelers is expected to post earnings of $24.71 per share on revenues of $48.83 billion, reflecting a 14.5% change in EPS and a 5.11% change in revenues [3] - For the next fiscal year, the company is projected to earn $26.17 per share on revenues of $50.5 billion, indicating a year-over-year change of 5.89% in EPS and 3.43% in revenues [3] Valuation Metrics - Travelers currently trades at 11.6 times the current fiscal year EPS estimates, which is a premium compared to the peer industry average of 11 times [7] - On a trailing cash flow basis, the stock trades at 5.1 times, while the peer group's average is 13 times [7] - The stock has a PEG ratio of 2.54, which does not place it among the top echelon of stocks from a value perspective [7] Zacks Rank and Style Scores - Travelers holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, meeting the criteria for investors looking for strong stocks [8] - The stock has a Value Score of B, a Growth Score of B, and a Momentum Score of D, resulting in a combined VGM Score of A [6] Industry Comparison - Travelers' performance is strong, but Arch Capital Group Ltd. (ACGL) is also a notable competitor with a Zacks Rank of 2 (Buy) and strong style scores [9] - ACGL is expected to post earnings of $9.50 per share on revenues of $18.72 billion for the current fiscal year, having beaten consensus estimates by 26.48% last quarter [10] - The Insurance - Property and Casualty industry is in the top 7% of all industries, indicating favorable conditions for both Travelers and ACGL [11]