10 Most Undervalued Insurance Stocks to Buy Now

5. The Travelers Companies, Inc. (NYSE:TRV)

Forward P/E: 13.39

No. of Hedge Fund Holders: 52

The Travelers Companies, Inc. (NYSE:TRV) is one of the largest insurance providers in the U.S. It provides a wide range of property and casualty insurance products. TRV specializes in offering coverage for personal, business, and specialty needs. The company offers various products including home, auto, and life insurance, as well as commercial lines for businesses.

On February 19, Keefe, Bruyette & Woods analyst Meyer Shields upgraded the rating of TRV shares from Market Perform to Outperform, raising the price target from $268 to $275. The analyst raised the rating on TRV following its Q4 results. The Travelers Companies Inc. (NYSE:TRV) reported a record core income of $2.1 billion in Q4 2024, a 30% increase year-over-year, and a full-year core income of $5 billion, up 64% compared to 2023. The earnings per share for the full year was $21.58, up 64% from a year ago.

Shields has slightly lowered the EPS estimate for 2025 from $22.20 to $21.75 per share. This adjustment was made due to the impact of California wildfire losses earlier this year. However, the analyst has increased its 2026 EPS estimate from $24.35 to $24.60 per share.