Progressive (PGR) ended the most recent trading day at $209.22, moving +1.07% from the previous trading session. The stock outperformed the S&P 500, which rose 0.12% on the day. Elsewhere, the Dow Jones Industrial Average rose 0.34%, while the tech-heavy Nasdaq fell 0.07%.
As of today, shares of the insurance company had lost 1.31% in the past month. During the same period, the Financials sector rose 6.78%, while the S&P 500 rose 4.99%.
The investment community will be paying close attention to Progressive’s earnings performance in upcoming releases. The company’s forward EPS is expected to be $2.41, which would represent a 382% increase compared to the same period last year. Meanwhile, our current consensus estimate is projecting revenue of $17.78 billion, representing year-over-year growth of 16.78%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.46 per share and revenue of $72.73 billion, which would represent changes of +87.56% and +17.77%, respectively, from the prior year.
Investors should also note recent changes to analyst estimates for Progressive. These latest adjustments often reflect changes in short-term business patterns. As a result, the positive estimate changes indicate that analysts have a favorable outlook on the health and profitability of the company’s business.
Our research indicates that these estimate changes are directly correlated to near-term stock performance. Investors can take advantage of this by using the Zacks Rank. This model takes these estimate changes into account and provides a simple and practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. is producing. The Zacks Consensus EPS estimate has moved 0.71% higher over the past month. Progressive currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Progressive’s current valuation metrics, including its Forward P/E of 18.06. This represents a premium compared to its industry’s estimated P/E of 12.79.
We can also see that PGR currently has a PEG ratio of 0.8. The PEG ratio is similar to the commonly used P/E ratio, but this metric also incorporates a company’s expected earnings growth rate. As of yesterday’s market close, the average PEG ratio for the Insurance/Personal Insurance industry was 1.25.
Insurance – The property and casualty insurance industry is part of the financial sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by determining the average Zacks Rank of the individual stocks that make up the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Throughout the coming trading sessions, be sure to use Zacks.com to monitor all of these metrics impacting stocks and more.
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