A Value Opportunity In The Travelers Companies, Inc. (TRV), The Goodyear Tire & Rubber Company (GT)

7 analysts out of 21 Wall Street brokerage firms rate The Travelers Companies, Inc. (NYSE:TRV) as a Buy, while 3 see it as a Sell. The rest 11 describe it as a Hold. TRV stock traded higher to an intra-day high of $137.85. At one point in session, its potential discontinued and the price was down to lows at $136.72. Analysts have set TRV’s consensus price at $137.41, effectively giving it a -0.23% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $160 (up 16.18% from current price levels). TRV has a 11% ROE, higher than the 10.48% average for the industry. The average ROE for the sector is 15.44%.

It is expected that in Mar 2019 quarter TRV will have an EPS of $2.76, suggesting a 12.2% growth. For Jun 2019 is projected at $2.43. It means that there could be a 34.25% growth in the quarter. Yearly earnings are expected to rise by 23.94% to about $11.08. As for the coming year, growth will be about 6.95%, lifting earnings to $11.85. RSI after the last trading period was 66.13. TRV recorded a change of 0.97% over the past week and returned 14.32% over the last three months while the TRV stock’s monthly performance revealed a shift in price of 3.5%. The year to date (YTD) performance stands at 15.01%, and the bi-yearly performance specified an activity trend of 7.45% while the shares have moved 0.31% for the past 12 months.

The Travelers Companies, Inc. (TRV) currently trades at $137.72, which is higher by 1.06% its previous price. It has a total of 263.62 million outstanding shares, with an ATR of around 1.59. The company’s stock volume dropped to 1.1 million, worse than 1.4 million that represents its 50-day average. A 5-day increase of about 0.97% in its price means TRV is now 15.01% higher on year-to-date. The shares have surrendered $43322.28 since its $138.99 52-week high price recorded on 17th of April 2018. Overall, it has seen a growth rate of 0.31 over the last 12 months. The current price per share is $26.64 above the 52 week low of $111.08 set on 26th of December 2018.

The Travelers Companies, Inc. (NYSE:TRV)’s EPS was $2.13 as reported for the December quarter. In comparison, the same quarter a year ago had an EPS of $2.28. That means that its growth in general now stands at -7%. Therefore, a prediction of $2.05 given by the analysts brought a positive surprise of 4%. TRV December quarter revenue was $6.69 billion, compared to $6.42 billion recorded in same quarter last year, giving it a 4% growth rate. The company’s $0.27 billion revenue growth that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

The Goodyear Tire & Rubber Company (NASDAQ:GT) shares appreciated 1.49% over the last trading period, taking overall 5-day performance up to 2.01%. GT’s price now at $19.77 is greater than the 50-day average of $18.89. Getting the trading period increased to 200 days, the stock price was seen at $21.48 on average. The general public currently hold control of a total of 231.41 million shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 231.54 million. The company’s management holds a total of 0.3%, while institutional investors hold about 92% of the remaining shares. GT share price finished last trade 7.22% above its 20 day simple moving average and its downbeat gap from 200 day simple moving average is -8.07%, while closing the session with 4.48% distance from 50 day simple moving average.

The Goodyear Tire & Rubber Company (GT) shares were last observed trading -30.24% down since April 16, 2018 when the peak of $28.34 was hit. Last month’s price growth of 11.88% puts GT performance for the year now at -3.14%. Consequently, the shares price is trending higher by 14.28%, a 52-week worst price since Mar. 25, 2019. However, it is losing value with -4.95% in the last 6 months. From a technical perspective, it appears more likely that the stock will experience a Bull Run market as a result of the strong support seen recently between $19.18 and $19.47. The immediate resistance area is now $20.14 Williams’s %R (14) for GT moved to 16.29 while the stochastic %K points at 90.86.

GT’s beta is 1.5; meaning investors could reap higher returns, although it also poses higher risks. The company allocated $2.94 per share from its yearly profit to its outstanding shares. Its last reported revenue is $3.88 billion, which was -5% versus $4.07 billion in the corresponding quarter last year. The EPS for Dec 19 quarter came in at $0.51 compared to $0.99 in the year-ago quarter and had represented -48% year-over-year earnings per share growth. GT’s ROA is 4%, lower than the 4.9% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 6.74%.

Estimated quarterly earnings for The Goodyear Tire & Rubber Company (NASDAQ:GT) are around $0.04 per share in three months through March with $0.44 also the estimate for June quarter of the fiscal year. It means the growth is estimated at -92% and -29.03%, respectively. Analysts estimate full-year growth to be -4.74%, the target being $2.21 a share. The upcoming year will see an increase in growth by percentage to 33.03%, more likely to see it hit the $2.94 per share. The firm’s current profit margin over the past 12 months is 4.5%. GT ranks lower in comparison to an average of 4.57% for industry peers; while the average for the sector is 13.47%.