Since August 2021, the S&P 500 has delivered a total return of 70.1%. But one standout stock has nearly doubled the market - over the past five years, Travelers has surged 129% to $371.89 per share. Its momentum hasn’t stopped as it’s also gained 20.5% in the last six months, beating the S&P by 8.8%.
Following the strength, is TRV a buy right now? Or is the market overestimating its value? Find out in our full research report, it’s free.
Why Does Travelers Spark Debate?
Tracing its roots back to 1853 when it insured travelers against accidents on steamboats and railroads, Travelers (NYSE: TRV) provides a wide range of commercial and personal property and casualty insurance products to businesses, government units, associations, and individuals.
Two Things to Like:
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Travelers’s EPS grew at 21.1% compounded annual growth rate over the last five years, higher than its 7.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
One Reason to Be Careful:
Net Premiums Earned Point to Soft Demand
When insurers sell policies, they protect themselves from extremely large losses or an outsized accumulation of losses with reinsurance (insurance for insurance companies). Net premiums earned are therefore net of what’s ceded to reinsurers as a risk mitigation and transfer strategy.
Travelers’s net premiums earned has grown at a 4.4% annualized rate over the last two years, worse than the broader insurance industry and in line with its total revenue.
Final Judgment
Travelers’s merits more than compensate for its flaws, and with its shares outperforming the market lately, the stock trades at 2.2× forward P/B (or $371.89 per share). Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More Than Travelers
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
