TRV - The Travelers Companies: A Good Value Stock Made Even Better By Share Buybacks

2024-05-12 03:58:57 ET

Summary

• The Travelers Companies had a difficult 2023 due to weather-related natural disasters, resulting in missed earnings.
• Consensus estimates expect substantial EPS recovery and growth in the next 1~2 years.
• Its EPS recovery potential is not fully priced in, judging by the discounted FWD P/E relative to its historical averages.
• The value proposition is further enhanced by the consistent share repurchases, especially when/if made at the current P/E multiples.

Travelers stock: 2023 headwinds are over

The Travelers Companies (TRV) has a pretty difficult 2023. As seen, both Q2 and Q3 2023 results missed consensus estimates by a large margin. This is largely due to the fact that weather-related natural disasters were well above historical averages. This has resulted in higher combined ratios for TRV (and many other insurance companies in the sector too)....

For further details see: