Travelers Stock Buy Hold or Sell Recommendation

TRV
 Stock
  

USD 159.98  1.02  0.64%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding The Travelers Companies is 'Strong Hold'. Macroaxis provides Travelers Companies buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding TRV positions. The advice algorithm takes into account all of Travelers Companies' available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Travelers Companies' buy-and-hold perspective. Additionally, take a look at Travelers Companies Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Travelers and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards The Travelers Companies.

Execute Travelers Companies Buy or Sell Advice

The Travelers recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on The Travelers Companies. Macroaxis does not own or have any residual interests in The Travelers Companies or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Travelers Companies' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Travelers CompaniesBuy Travelers Companies
Strong Hold

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

SellDetails

Financial Strenth (F Score)

FrailDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon The Travelers Companies has a Risk Adjusted Performance of (0.10), Jensen Alpha of (0.1), Total Risk Alpha of (0.06) and Treynor Ratio of (0.21)
Macroaxis provides recommendation on The Travelers Companies to complement and cross-verify current analyst consensus on The Travelers Companies. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure The Travelers Companies is not overpriced, please validate all Travelers Companies fundamentals, including its price to earning, book value per share, last dividend paid, as well as the relationship between the net income and beta . Given that The Travelers Companies has a number of shares shorted of 3.45 M, we advise you to double-check The Travelers Companies market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Travelers Companies Trading Alerts and Improvement Suggestions

Travelers Companies generated a negative expected return over the last 90 days
The company has 7.29 B in debt with debt to equity (D/E) ratio of 0.32, 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 85.0% of Travelers Companies shares are owned by institutional investors
On 30th of June 2022 Travelers Companies paid $ 0.93 per share dividend to its current shareholders
Latest headline from www.defenseworld.net: Victory Capital Management Inc. Has 27.80 Million Position in The Travelers Companies, Inc. - Defense World

Travelers Companies current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Travelers analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Travelers analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price175.12
Target Median Price176.00
Target High Price190.00
Recommendation Mean2.80
Number Of Analyst Opinions17
Target Low Price158.00
Average Consensus Sell
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Travelers Companies Returns Distribution Density

The distribution of Travelers Companies' historical returns is an attempt to chart the future uncertainty of Travelers Companies' future price movements. The chart of the probability distribution of Travelers Companies stock daily returns describes the distribution of returns around its average expected value. We use The Travelers Companies price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Travelers Companies returns is essential to provide solid investment advice for Travelers Companies stock.
Mean Return-0.12Value At Risk-2.33
Potential Upside2.17Standard Deviation1.51
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Travelers Companies historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Travelers Companies Cash Flow Accounts

201720182019202020212022 (projected)
Net Cash Flow from Financing(1.92 B)(2.01 B)(2.19 B)(1.42 B)(2.04 B)(2.2 B)
Net Cash Flow from Investing(1.82 B)(2.33 B)(2.9 B)(4.89 B)(5.2 B)(5.33 B)
Net Cash Flow from Operations3.76 B4.38 B5.21 B6.52 B7.27 B7.85 B

Travelers Companies Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Travelers Companies or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Travelers Companies stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Travelers stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.1
β
Beta against DOW0.61
σ
Overall volatility
1.54
Ir
Information ratio -0.05

Travelers Companies Volatility Alert

The Travelers Companies exhibits very low volatility with skewness of -0.09 and kurtosis of 0.88. However, we advise investors to further study The Travelers Companies technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Travelers Companies' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Travelers Companies' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Travelers Companies Implied Volatility

Travelers Companies' implied volatility" href="/stock-options/TRV/The-Travelers-Companies">Travelers Companies' implied volatility exposes the market's sentiment of The Travelers Companies stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Travelers Companies' implied volatility" href="/stock-options/TRV/The-Travelers-Companies">Travelers Companies' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Travelers Companies stock will not fluctuate a lot when Travelers Companies' options" href="/stock-options/TRV/The-Travelers-Companies">Travelers Companies' options are near their expiration.

Travelers Companies Fundamentals Vs Peers

Comparing Travelers Companies' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Travelers Companies' direct or indirect competition across all of the common fundamentals between Travelers Companies and the related equities. This way, we can detect undervalued stocks with similar characteristics as Travelers Companies or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Travelers Companies' fundamental indicators could also be used in its relative valuation, which is a method of valuing Travelers Companies by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Travelers Companies to competition
FundamentalsTravelers CompaniesPeer Average
Return On Equity13.70 %(0.31) %
Return On Asset2.45 %(0.14) %
Profit Margin9.97 %(1.27) %
Operating Margin15.35 %(5.51) %
Current Valuation40.74 B16.62 B
Shares Outstanding237.31 M571.82 M
Shares Owned by Insiders0.21 %10.09 %
Shares Owned by Institutions85.30 %39.21 %
Number of Shares Shorted3.45 M4.71 M
Price to Earning11.12 X28.72 X
Price to Book1.66 X9.51 X
Price to Sales1.06 X11.42 X
Revenue35.76 B9.43 B
Gross Profit9.47 B27.38 B
EBITDA5.49 B3.9 B
Net Income3.54 B570.98 M
Cash and Equivalents4.28 B2.7 B
Cash per Share18.03 X5.01 X
Total Debt7.29 B5.32 B
Debt to Equity0.32 %48.70 %
Current Ratio0.34 X2.16 X
Book Value Per Share96.39 X1.93 K
Cash Flow from Operations6.88 B971.22 M
Short Ratio2.88 X4.00 X
Earnings Per Share14.39 X3.12 X
Price to Earnings To Growth1.83 X4.89 X
Number of Employees30.18 K18.84 K
Beta0.64-0.15
Market Capitalization37.97 B19.03 B
Total Asset100.18 B29.47 B
Retained Earnings31.26 B9.33 B
Z Score3.08.72
Five Year Return2.34 %
   Exercise or conversion by William Heyman of 10000 shares of Travelers Companies subject to Rule 16b-3 [view details]

About Travelers Companies Buy or Sell Advice

When is the right time to buy or sell The Travelers Companies? Buying financial instruments such as Travelers Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Travelers Companies investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Cash and Equivalents494 M721 M761 M821.08 M
Total Assets110.12 B116.76 B120.47 B108.21 B

Use Investing Ideas to Build Portfolios

In addition to having Travelers Companies in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Personal Services Thematic Idea Now

Personal Services
Personal Services Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Personal Services theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Personal Services Theme or any other thematic opportunities.
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Additionally, take a look at Travelers Companies Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the The Travelers Companies information on this page should be used as a complementary analysis to other Travelers Companies' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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When running The Travelers Companies price analysis, check to measure Travelers Companies' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Travelers Companies is operating at the current time. Most of Travelers Companies' value examination focuses on studying past and present price action to predict the probability of Travelers Companies' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Travelers Companies' price. Additionally, you may evaluate how the addition of Travelers Companies to your portfolios can decrease your overall portfolio volatility.
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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
-0.38
Market Capitalization
37.7 B
Quarterly Revenue Growth YOY
0.052
Return On Assets
0.0245
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.