The Travelers Companies, Inc. (TRV) Hits Fresh High: Is There Still Room to Run?

Shares of Travelers (TRV) have been strong performers lately, with the stock up 6.2% over the past month. The stock hit a new 52-week high of $288.95 in the previous session. Travelers has gained 18.8% since the start of the year compared to the 15.3% move for the Zacks Finance sector and the 9.8% return for the Zacks Insurance - Property and Casualty industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 16, 2025, Travelers reported EPS of $8.14 versus consensus estimate of $6.01 while it beat the consensus revenue estimate by 0.74%.For the current fiscal year, Travelers is expected to post earnings of $24.71 per share on $48.83 in revenues. This represents a 14.5% change in EPS on a 5.11% change in revenues. For the next fiscal year, the company is expected to earn $26.17 per share on $50.5 in revenues. This represents a year-over-year change of 5.89% and 3.43%, respectively.Valuation MetricsWhile Travelers has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Travelers has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 11X. On a trailing cash flow basis, the stock currently trades at 5.1X versus its peer group's average of 13X. Additionally, the stock has a PEG ratio of 2.54. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Travelers currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Travelers meets the list of requirements. Thus, it seems as though Travelers shares could have a bit more room to run in the near term.How Does TRV Stack Up to the Competition?Shares of TRV have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Arch Capital Group Ltd. (ACGL). ACGL has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of A.Earnings were strong last quarter. Arch Capital Group Ltd. beat our consensus estimate by 26.48%, and for the current fiscal year, ACGL is expected to post earnings of $9.50 per share on revenue of $18.72 billion.Shares of Arch Capital Group Ltd. have gained 2.5% over the past month, and currently trade at a forward P/E of 10.11X and a P/CF of 9.05X.The Insurance - Property and Casualty industry is in the top 7% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TRV and ACGL, even beyond their own solid fundamental situation.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Travelers Companies, Inc. (TRV): Free Stock Analysis Report Arch Capital Group Ltd. (ACGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks