4-Star Stocks Poised to Pop: Travelers Companies
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, property and casualty insurance provider Travelers Companies (NYS: TRV) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Travelers' business and see what CAPS investors are saying about the stock right now.
Travelers facts
Headquarters (founded) | New York (1853) |
Market Cap | $25.1 billion |
Industry | Property and casualty insurance |
Trailing-12-Month Revenue | $25.6 billion |
Management | Chairman/CEO Jay Fishman |
Return on Equity (average, past 3 years) | 10.8% |
Cash/Debt | $3.7 billion / $6.6 billion |
Dividend Yield | 2.9% |
Competitors | AIG |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 92% of the 460 members who have rated Travelers believe the stock will outperform the S&P 500 going forward.
A couple of months ago, one of those Fools, BenGrosser, succinctly summed up the bull case for our community:
P&C insurance market is currently hardening ... [Travelers] continues to post solid returns even through the soft market experienced in the past 5-8 years. [Return on equity] typically in the mid-teens w/ the exception of 2011. 2011 was not kind to the P&C insurance industry, w/ CAT (catastrophe) losses at record highs.
Look for [Travelers] to emerge as a clear leader as capacity decreases, demand increases, and weaker market share buyers are forced out of the market.
If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Travelers may not be your top choice.
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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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