Travelers Companies: Earnings Set to Dip Amid Optimism in Stock Ratings

With a market cap of around $60 billion, The Travelers Companies, Inc. (TRV) is a major player in the insurance sector. The firm offers both commercial and personal property and casualty insurance through its diverse segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance, serving clients in the U.S. and selected international markets. Their product lineup includes workers’ compensation, liability, auto, property, marine, aviation, energy, and homeowners’ insurance, all distributed through various brokers, agents, and program managers.

Upcoming Earnings Announcement

The New York-based company plans to announce its fiscal Q1 2025 earnings results before markets open on Wednesday, April 16. Analysts predict that the insurance behemoth will report a profit of $0.62 per share, representing a decline of 86.8% from $4.69 per share recorded in the same quarter last year. Historically, Travelers has performed well, exceeding Wall Street’s earnings estimates in three of the last four quarters, although it missed expectations once. Notably, in Q4 2024, TRV exceeded the consensus EPS estimate by an impressive 39.3%.

Fiscal 2025 Projections and Future Outlook

For fiscal 2025, analysts expect TRV to report an EPS of $17.09, down 20.8% from the $21.58 in fiscal 2024. On a brighter note, projections indicate a recovery, with EPS anticipated to rebound and grow by 33.4% year-over-year to $22.79 in fiscal 2026.

Stock Performance Overview

Shares of TRV have risen 14.9% over the past 52 weeks, beating both the S&P 500 Index’s ($SPX) 3.6% gain and the Financial Select Sector SPDR Fund’s (XLF) 14.5% return during the same timeframe.

On January 22, shares of TRV rose 3.2% after the company reported Q4 2024 earnings that significantly surpassed Wall Street expectations. Core income reached $9.15 per share, a result supported by strong underwriting outcomes and a notable 23% increase in net investment income, which offset heightened catastrophe losses. The company also reported a 7% rise in net written premiums, totaling $10.7 billion for the quarter and a record $43.4 billion for the full year.

Analysts’ Consensus on Travelers’ Stock

The consensus among analysts regarding Travelers Companies’ stock is cautiously optimistic, reflected in a “Moderate Buy” rating. Among 26 analysts covering the stock, nine recommend “Strong Buy,” one suggests “Moderate Buy,” 12 advocate for “Hold,” one gives “Moderate Sell,” and three advise “Strong Sell.” This outlook is more positive than it was three months ago, where only seven analysts recommended a “Strong Buy.”

As of now, TRV is trading below the average analyst price target of $272.41.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are presented solely for informational purposes. For further details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.