On Apr 10, Zacks Investment Research upgraded
The Travelers Companies, Inc
) to a Zacks Rank #2 (Buy).
Why the Upgrade?
Travelers has been witnessing rising earnings estimates since it
reported solid fourth-quarter results.
Moreover, on Apr 2, the property and casualty insurer announced
the launch of MedFirst Plus, comprising four new coverage
endorsements to its MedFirst policy. The policy will likely be
useful to medical technology companies to cover data theft,
malicious tampering and wireless malfunction risks.
Over the last 30 days, 5 of 16 estimates moved north pushing
the Zacks Consensus Estimate for 2013 to $7.13 by 1.4%.
Also 4 of 16 estimates were raised for 2014 to push the Zacks
Consensus Estimate to $7.43 by 0.7% over the same time frame.
ARCH CAP GP LTD (ACGL): Free Stock Analysis
AXIS CAP HLDGS (AXS): Free Stock Analysis
TRAVELERS COS (TRV): Free Stock Analysis
XL GROUP PLC (XL): Free Stock Analysis Report
To read this article on Zacks.com click here.
With respect to earnings trend, Travelers delivered positive
earnings surprises in all of the last 4 quarters with an average
beat of 140.74%. Our proven model shows that the property &
casualty insurer is likely to beat earnings in the first quarter
of 2013 because it has a right combination of a positive Earnings
Zacks Earnings ESP: A Better Method
) and Zacks Rank. ESP, or Expected Surprise Prediction,
represents the difference between the Most Accurate Estimate and
the Zacks Consensus Estimate is +2.55%.
Travelers is scheduled to release its first-quarter 2013 earnings
results on Apr 23. The Zacks Consensus Estimate for the first
quarter is currently pegged at $1.96.
Travelers boasts of a strong dividend yield, which in turn helps
retain investor confidence. Its dividend yield of 2.16% is better
than the industry average of 2.03%.
Additionally, due to the absence of any significant catastrophe
event in the first quarter, the company's underwriting
performance is expected to deliver better results.
Other Stocks to Consider
Apart from Travelers, other stocks that are outperforming in the
insurance sector include
AXIS Capital Holdings Ltd
XL Group Plc
Arch Capital Group Ltd.
). All these stocks carry a Zacks Rank #1 (Strong Buy).