Travelers Stock Performance

TRV
 Stock
  

USD 188.91  0.90  0.48%   

On a scale of 0 to 100, Travelers Companies holds a performance score of 11. The entity has a beta of 0.6812, which indicates possible diversification benefits within a given portfolio. Let's try to break down what Travelers's beta means in this case. As returns on the market increase, Travelers Companies returns are expected to increase less than the market. However, during the bear market, the loss on holding Travelers Companies will be expected to be smaller as well. Although it is important to respect The Travelers Companies current price movements, it is better to be realistic regarding the information on the equity's historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting The Travelers Companies technical indicators, you can presently evaluate if the expected return of 0.23% will be sustainable into the future. Please operates Travelers Companies sortino ratio, as well as the relationship between the semi variance and rate of daily change to make a quick decision on whether The Travelers Companies existing price patterns will revert.
  
Travelers Performance
11 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in The Travelers Companies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Travelers Companies showed solid returns over the last few months and may actually be approaching a breakup point. ...more

Structure and Payout Changes

Forward Annual Dividend Yield
0.0199
Payout Ratio
0.26
Last Split Factor
2:1
Forward Annual Dividend Rate
3.72
Dividend Date
2022-12-30
Ex Dividend Date
2022-12-08

Travelers Price Channel

Quick Ratio0.18
Fifty Two Week Low145.40
Target High Price200.00
Fifty Two Week High188.42
Payout Ratio26.48%
Trailing Annual Dividend Yield1.83%
Target Low Price155.00

Travelers Companies Relative Risk vs. Return Landscape

If you would invest  16,442  in The Travelers Companies on August 28, 2022 and sell it today you would earn a total of  2,449  from holding The Travelers Companies or generate 14.89% return on investment over 90 days. The Travelers Companies is generating 0.2278% of daily returns assuming volatility of 1.4736% on return distribution over 90 days investment horizon. In other words, 12% of stocks are less volatile than Travelers, and above 96% of all equities are expected to generate higher returns over the next 90 days.
  Daily Expected Return (%)  
       Risk (%)  
Considering the 90-day investment horizon Travelers Companies is expected to generate 1.07 times more return on investment than the market. However, the company is 1.07 times more volatile than its market benchmark. It trades about 0.15 of its potential returns per unit of risk. The DOW is currently generating roughly 0.08 per unit of risk.

Travelers Companies Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Travelers Companies' investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as The Travelers Companies, and traders can use it to determine the average amount a Travelers Companies' price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.1546

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Estimated Market Risk
 1.47
  actual daily
 
 12 %
of total potential
 
1212
Expected Return
 0.23
  actual daily
 
 4 %
of total potential
 
44
Risk-Adjusted Return
 0.15
  actual daily
 
 11 %
of total potential
 
1111
Based on monthly moving average Travelers Companies is performing at about 11% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Travelers Companies by adding it to a well-diversified portfolio.

About Travelers Companies Performance

To evaluate The Travelers Companies Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Travelers Companies generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Travelers Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand The Travelers Companies market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Travelers's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Effect of Exchange Rate Changes on Cash-10.3 M-10.6 M
Return on Average Assets 3.09  2.77 
Return on Average Equity 12.61  11.45 
Return on Invested Capital 0.0378  0.0331 
Return on Sales 0.14  0.13 

Things to note about The Travelers Companies

Checking the ongoing alerts about Travelers Companies for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for The Travelers Companies help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Travelers Companies Alerts

Equity Alerts and Improvement Suggestions

The company has 7.29 B in debt with debt to equity (D/E) ratio of 0.37, which is OK given its current industry classification. The Travelers Companies has a current ratio of 0.33, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Travelers Companies until it has trouble settling it off, either with new capital or with free cash flow. So, Travelers Companies' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like The Travelers Companies sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Travelers to invest in growth at high rates of return. When we think about Travelers Companies' use of debt, we should always consider it together with cash and equity.
Travelers Companies has a frail financial position based on the latest SEC disclosures
Over 86.0% of Travelers Companies shares are owned by institutional investors
On 30th of September 2022 Travelers Companies paid $ 0.93 per share dividend to its current shareholders
Latest headline from news.google.com: Travelers Companies Vice Chairman Trades 621K In Company Stock - Travelers Companies - Benzinga
Additionally, take a look at World Market Map. You can also try Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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Is Travelers Companies' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Travelers Companies. If investors know Travelers will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Travelers Companies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.28) 
Market Capitalization
44.1 B
Quarterly Revenue Growth YOY
0.057
Return On Assets
0.0232
Return On Equity
0.14
The market value of The Travelers Companies is measured differently than its book value, which is the value of Travelers that is recorded on the company's balance sheet. Investors also form their own opinion of Travelers Companies' value that differs from its market value or its book value, called intrinsic value, which is Travelers Companies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Travelers Companies' market value can be influenced by many factors that don't directly affect Travelers Companies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Travelers Companies' value and its price as these two are different measures arrived at by different means. Investors typically determine Travelers Companies value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Travelers Companies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.