Dow Jones stock Travelers is Friday's IBD Stock Of The Day as the property and casualty insurance play trades just below a traditional buy point despite the current market uncertainty.
Investors have been moving away from growth stocks in recent weeks and looking to put money into more defensive plays, including Travelers and other insurance industry stocks. Property and casualty providers can show more stable earnings but have their own risks, including natural disasters.
Travelers offers property and casualty coverage for individuals and businesses including home, vehicle, travel, flood and events. It has more than 15,000 independent agents and brokers in the U.S., Canada, the U.K. and Ireland.
Travelers topped fourth-quarter earnings and sales estimates on Jan. 22. Profit grew 31% to $9.15 a share from $7.01 a share a year ago. Sales has been fairly consistent and climbed an average 12% over the last eight quarters.
Recently updated full-year 2025 profit estimates call for an 18% drop in Travelers earnings, with a big first-quarter hit as many insurers face heavy claims from the Los Angeles wildfires. But they're seen rebounding 35% in 2026. Revenue growth is expected to slow to an average 7% over the next four quarters. The insurance provider plans to report first-quarter results on April 16.
Travelers stock is also on the IBD 50 Growth Stocks To Watch.
Dow Jones: Travelers Stock Performance
TRV shares fell 1.1% to 256.70 during stock market action on Friday. Shares are above their 21-day exponential and 50-day moving averages. Further, both lines are trending upward, which is a positive sign for the stock.
The Dow Jones stock has formed a flat base with a 269.56 buy point, according to MarketSurge chart analysis. Aggressive investors could also use the recent high of 266.74 as an early entry.
The stock's relative strength line has also been hitting highs, a sign that the TRV performing well compared to the S&P 500. The Dow stock is up around 7% in 2025. Meanwhile, the 60 stocks in the IBD-tracked Insurance-Property/Casualty/Title group industry group is up collectively more than 3% on they year.
Travelers stock has a 21-day average true range of 2.24%. The ATR metric is available on IBD's MarketSurge charting tool. It gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
In the current, unpredictable market, IBD suggests stocks with ATRs of 3 or below.
The Dow Jones stock has a 95 Composite Rating out of a best-possible 99. Travelers also has an 85 Relative Strength Rating and a 94 EPS Rating.
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