E = Earnings Are Mixed Quarter-Over-Quarter
In order for Travelers to continue to see rising prices, it must see increasing earnings and revenue growth. What do the last four quarterly earnings and revenue growth figures for Travelers look like? The last four quarterly earnings growth (Y-O-Y) rates have been: -47.06, 179.7, 238, and 5.2 percent while the last four revenue growth (Y-O-Y) rates have all been: 1.63, 1.64, -0.45, and 1.82 percent. At first glance, the latest earnings growth figures do not look so good.
How did the street like these numbers? The last four quarterly earnings announcement reactions help gauge investor sentiment on Travelers’s stock. The last four quarters have seen next trading session returns of -0.39, 3.58, -0.47, and 3.75 percent. The markets have been mixed with the last four earnings reports.
E = Excellent Relative Performance Versus Peers and Sector
Travelers has been on a surge since its IPO but how has the stock done, relative to its peers and sector, year-to-date? Year-to-date, the stock is returning 11.95 percent while its competitors, American International Group (NYSE:AIG), WR Berkley (NYSE:WRB), Berkshire Hathaway (NYSE:BRK-A), and sector are returning 8.96, 9.04, 11.38, and 14.8 percent respectively. Travelers has led most of its closest peers but is trailing its overall sector slightly.
The insurance business is here to stay, so Travelers is in a key position to see continued profits. Its stock has been a great performer year-to-date as it has beat its closest competitors. Travelers stock is supported by its moderately increasing earnings and revenue growth rates that have pleased the Street. Look for Travelers to OUTPERFORM.
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