Travelers(US:TRV) Zacks Investment Researchยท2024-05-08 14:02Core Viewpoint - Travelers (TRV) has been experiencing a decline in stock performance, with a return of -3.1% over the past month, compared to the S&P 500's -0.2% and the Zacks Insurance - Property and Casualty industry's -2.6% [1] Earnings Estimates Revisions - The current quarter's earnings estimate for Travelers is $3.23 per share, reflecting a significant increase of +5,283.3% year-over-year, with a 30-day change of +5.6% [3] - The consensus earnings estimate for the current fiscal year is $17.81, indicating a year-over-year change of +35.6%, with a 30-day change of +0.7% [3] - For the next fiscal year, the consensus estimate is $20.37, showing a change of +14.4% from the previous year, with a 30-day change of +0.8% [3] Revenue Growth Potential - The consensus sales estimate for the current quarter is $11.45 billion, indicating a year-over-year growth of +13% [6] - The sales estimates for the current and next fiscal years are $46.33 billion and $50 billion, reflecting changes of +11.7% and +7.9%, respectively [6] Recent Performance and Surprise History - In the last reported quarter, Travelers generated revenues of $11.19 billion, a year-over-year increase of +15.4%, with an EPS of $4.69 compared to $4.11 a year ago [7] - The reported revenues matched the Zacks Consensus Estimate, resulting in a surprise of +0.05%, while the EPS surprise was -1.26% [7] - Over the last four quarters, Travelers surpassed EPS estimates only once but exceeded revenue estimates each time [7] Valuation Metrics - Travelers is graded A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [10] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [8][9] Conclusion - The Zacks Rank 3 suggests that Travelers may perform in line with the broader market in the near term, despite the market buzz surrounding the stock [11]