Travelers' 30% Rally Triggers Wave of Wall Street Downgrades

Travelers’ 30% rally has triggered a wave of Wall Street downgrades as analysts increasingly question whether the stock can keep climbing. Shares of The Travelers Companies (NYSE:TRV) have gained more than 30% this year, putting the company on track for its strongest annual performance since 2000 and lifting it to a record high. The advance was supported by solid earnings, a shift away from some major technology stocks amid concerns over heavy artificial intelligence spending, and stronger investor demand for defensive sectors during geopolitical uncertainty. At least six analysts have downgraded Travelers this month, including moves that became more cautious even after stronger-than-expected second-quarter results last week. Goldman Sachs analyst Robert Cox cut TRV to sell, while BMO analyst Mike Zaremski lowered it to market perform and Morgan Stanley analyst Bob Jian Huang reduced it to underweight. Travelers now trades at about 12 times forward earnings versus roughly 10 earlier this year, at 2.7 times tangible book value above its 10-year average.