Is Travelers Companies Stock Outperforming the Dow?

TRV -1.68% ^DJI +0.92%

New York-based The Travelers Companies, Inc. (TRV) is a leading provider of commercial and personal property, and property casualty insurance for auto, home and business. Valued at $65.3 billion by market cap, the company’s diverse business lines offer its global customers a wide range of coverage sold primarily through independent agents and brokers.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and TRV perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the property & casualty insurance industry. TRV's strong brand drives loyalty and stability, while its diversified insurance products and financial strength provide a buffer against market volatility, enhancing resilience.

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Despite its notable strength, TRV slipped 2.1% from its 52-week high of $296.85, achieved on Nov. 25. Over the past three months, TRV stock gained 7%, outperforming the Dow Jones Industrials Average’s ($DOWI) 3.8% gains during the same time frame.

In the longer term, shares of TRV rose 20.6% on a YTD basis and climbed 9.2% over the past 52 weeks, outperforming DOWI’s YTD gains of 11.2% and 5.3% returns over the last year.

To confirm the bullish trend, TRV has been trading above its 50-day moving average since early November. The stock is trading above its 200-day moving average over the past year, with slight fluctuations.

TRV's outperformance stems from strong underwriting profits, driven by lower catastrophe losses and disciplined risk selection, alongside higher investment income. CEO Alan Schnitzer highlighted robust performance across business segments while emphasizing strategic investments in technology and AI to drive profitable growth, positioning TRV well to meet future challenges.

On Oct. 16, TRV shares closed down by 2.9% after reporting its Q3 results. Its revenue stood at $12.5 billion, up 4.8% year over year. The company’s adjusted EPS rallied 55.3% from the year-ago quarter to $8.14.

TRV’s rival, Cincinnati Financial Corporation (CINF) shares lagged behind the stock, with a 15.5% uptick on a YTD basis and 3.9% gains over the past 52 weeks.

Wall Street analysts are reasonably bullish on TRV’s prospects. The stock has a consensus “Moderate Buy” rating from the 26 analysts covering it, and the mean price target of $299.33 suggests a potential upside of 3% from current price levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com