Does These Stocks Deserve Your Investment Dollars? – The Travelers Companies Inc. (TRV), A. O. Smith Corporation (AOS)

You should consider shares of The Travelers Companies Inc. (NYSE:TRV) and A. O. Smith Corporation (NYSE:AOS) if you are looking for a great stocks to invest in. Starting with the TRV shares, which traded at $136.84 at the close of the recent session, gaining 0.12%. On Wednesday, the company’s shares shed $0.16 from its value which represented in intraday trading. The stock is now 5.58% higher in year-to-date (YTD) trading. TRV’s intraday high was $137.32 while its lowest price touched $136.13. The stock’s 52-week high price is $155.09, which means the current price is at -11.77%. In terms of trading activity, the daily trading volume fell to 1056818 against 200-day average trading volume of 1,285,196 shares.

What are analyst forecasts for The Travelers Companies Inc. (NYSE:TRV)?

At a consensus rating of 3.00, TRV is trending as a streaking Hold, as it has been the case a month ago when 17 analysts called it a Hold. Two months ago, 16 analysts recommended, on average, that TRV stock is a Hold. The Financial company’s shares’ overall bullish trend saw it close lower on Wednesday compared to its opening price of $137.08 on the day.

Forecasts for The Travelers Companies Inc. (NYSE:TRV) give the stock a fair value for the growth of 2.26% from its last price. The 12-month price forecast for the stock by analysts puts the stock’s mean price target at $140.00, which means the price per share could rise by nearly $3.16. The price range target is between a low of $126.00 and a high of $162.00. The stock would need to gain by about $15.53 to hit the estimated high or 0.81% from its 12-month low.

The consensus among 22 analysts is that it is a good time for one to Hold in the The Travelers Companies Inc. 3 analysts rate TRV as a Buy, with 4 of 22 analysts rate it as a Sell. 0 have valued the stock as Overweight and 15 have recommended that investors Hold.

The Travelers Companies Inc. (NYSE:TRV) Upgrades and Downgrades

In terms of rating changes, JP Morgan on November 12, 2019, Resumed The Travelers Companies Inc. (TRV) at Neutral. They believe the stock could reach $140 in the near term. Analysts at MKM Partners have assigned a Buy rating for the stock in their research note on October 28, 2019 with an estimated price target of $160. Moreover, Deutsche Bank analysts issued a rating of Hold for the stock on October 23, 2019, giving it a price target of $140 for the next 12 months. On October 17, 2019, the stock earned a Underperform rating due to an analyst call from Evercore ISI, while analysts from BofA/Merrill on September 18, 2019 suggested that the stock is Neutral.

A. O. Smith Corporation (NYSE:AOS) adds $0.05 on Wednesday

The AOS stock has risen 14.15% year-to-date and is currently trading at $48.74, which is -13.98% below its 52-week high. The company shares gained 0.10% on the day and have risen nearly 20.70% off a low hit. At current levels, A. O. Smith Corporation has a valuation of about $3.05B. As of 11/27/19, this stock has risen 1.35% during the week and closed at $48.69 in the previous session. However, recent A. O. Smith Corporation stock performance shows that AOS shares are -1.00% down over the last month, and 5.66% up for the last three months.

Earnings per share (EPS) estimates for the current quarter are $0.7, with the trailing 12-month share earnings at $2.40. The ratio is expected to be down by -13.40% for the current year 2019 and 11.90% for next year. Over the next 5-year period, earnings per share will be 5.90%. But will the AOS stock surprise in the current quarter results, where the $0.53 actual EPS reported on 9/29/2019 surprised by 0.00% or was lower by $0 from the estimated $0.53.

Sales Growth to climb 3.20% for the year

How well will A. O. Smith Corporation perform as a business over the current quarter, year and next 5-year period? Compared to the year-ago quarter, analysts forecast the company to bring in between $762.4M and $796M in current quarter sales. The consensus estimated for the current quarter is $778.16M from sales. Forecasts for this fiscal year are between $3B and $3.04B and the consensus estimate for sales is at $3.02B. AOS has its next quarter sales estimates at between $746.4M and $768.6M, with the quarter-over-quarter growth estimates at -1.10% and the annual growth forecast for the year at 3.20%.

Who owns shares in A. O. Smith Corporation (AOS)?

Let’s briefly focus on the share ownership of the A. O. Smith Corporation (NYSE:AOS) stock, where we find that 98.66% of shares are held by institutions. Vanguard Group, Inc. (The) tops the list of institutional owners as it is holding 15.95 million shares or 11.63% of shares outstanding. Blackrock Inc. and State Street Corporation held 11.54 million and 9.68 million representing 8.42% and 7.07% respectively at the close of the last trading session. As of Sep 29, 2019, Brown Brothers Harriman & Co accounted for 4.7 million shares at over 224.32 million. This represented 3.43% of shares outstanding. Impax Asset Management Group Plc held 3.82 million shares at over 182.32 million representing 2.79% of shares outstanding.

AOS Insider Activity

Insider activity can also give a signal in terms of price direction. Looking at A. O. Smith Corporation (AOS), a total of 22639 shares have been sold by insiders over the last 6 months while 63930 shares were added in the same time span. On 8/23/2019, Executive Chairman by the name Rajendra Ajita G sold 34442.0 shares worth $1.6 million at the price of $46.74 per share. Filings also show that Jones Paul W sold a total of 20000.0 shares on 2/08/2019 valued at $980000.0. Since the last insider activity, the company’s share price has dropped -1.06%.