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Progressive (PGR) Rises 12.6% in a Year: More Room to Run?
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Shares of Progressive Corporation (PGR - Free Report) have rallied 12.6% in a year compared with the industry's increase of 8.6%. The Zacks S&P 500 composite has rallied 7.7% in the said time frame. With a market capitalization of $60.6 billion, the average volume of shares traded in the last three months was 2.9 million.
Image Source: Zacks Investment Research
The rally was largely driven by higher premiums earned, increased rate of conversion and sufficient liquidity.
Progressive has a favorable VGM Score of B. VGM Score helps to identify stocks with the most attractive value, the best growth and the most promising momentum.
Can PGR Retain the Momentum?
Estimates for 2022 and 2023 have moved up nearly 2.2% and 0.4%, respectively, in the past 30 days, reflecting investors’ optimism. The expected long-term earnings growth rate is pegged at 19.7%, higher than the industry average of 12.3%.
The Zacks Consensus Estimate for 2022 and 2023 earnings per share is pegged at $4.99 and $6.20, respectively, indicating a year-over-year increase of nearly 13.1% and 24.1%, respectively.
This Zacks Rank #3 (Hold) insurer is well poised to grow on the back of solid performance across its Personal Lines, Commercial Lines and Property operating segments.
Banking on higher net premiums earned, improved investment income, increased fees and other revenues and service revenues, the top-line increased at a five-year CAGR (2017-2021) of 12.2%.
The Personal Lines business accounted for the lion’s share of total net premiums written in 2021. The solid performance of personal auto and special lines products is likely to drive this segment.
Growth in all business market targets, increase in transportation network company (TNC) business, increased quote volume and rate of conversion are likely to drive Commercial Lines business.
The acquisition of Protective Insurance Corporation in June 2021 expanded the insurer’s portfolio of offerings to a larger fleet, workers’ compensation coverage for trucking and public transportation fleets, along with trucking industry independent contractors and affinity programs. Protective Insurance represented 1% of companywide net premiums written and 6% of Commercial Lines net premiums written from the date of acquisition.
Both Commercial Lines business and Property businesses have reinsurance programs, which are intended to reduce overall risk, protect capital from the costs associated with catastrophic events, and manage exposure in commercial auto, TNC, BOP, and workers’ compensation products.
In January 2022, the Property business entered into a new aggregate excess of loss program for the 2022 accident year, where the first layer has a retention threshold of $575 million and provides $75 million of coverage and the second layer has a retention threshold of $650 million and provides $100 million of coverage.
Progressive boasts an impressive solvency level as well. PGR exited 2021 with cash and cash equivalents, which increased more than two-fold year over year.
Kinsale Capital’s earnings surpassed estimates in each of the last four quarters, the average beat being 32.04%. In the past year, Kinsale Capital has rallied 20.1%.
The Zacks Consensus Estimate for KNSL’s 2022 and 2023 earnings has moved 3.8% and 3.5% north, respectively, in the past seven days.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 275.45%. In the past year, United Fire has declined 21.5%.
The Zacks Consensus Estimate for UFCS’ 2022 and 2023 earnings has moved 122.2% and 76.9% north, respectively, in the past 30 days.
The bottom line of Cincinnati Financial surpassed earnings estimates in each of the last four quarters, the average being 38.48%. In the past year, the insurer has rallied 12.3%.
The Zacks Consensus Estimate for Cincinnati Financial’s 2022 and 2023 earnings has moved 5.7% and 5.5% north, respectively, in the past 30 days.
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Progressive (PGR) Rises 12.6% in a Year: More Room to Run?
Shares of Progressive Corporation (PGR - Free Report) have rallied 12.6% in a year compared with the industry's increase of 8.6%. The Zacks S&P 500 composite has rallied 7.7% in the said time frame. With a market capitalization of $60.6 billion, the average volume of shares traded in the last three months was 2.9 million.
Image Source: Zacks Investment Research
The rally was largely driven by higher premiums earned, increased rate of conversion and sufficient liquidity.
Progressive has a favorable VGM Score of B. VGM Score helps to identify stocks with the most attractive value, the best growth and the most promising momentum.
Can PGR Retain the Momentum?
Estimates for 2022 and 2023 have moved up nearly 2.2% and 0.4%, respectively, in the past 30 days, reflecting investors’ optimism. The expected long-term earnings growth rate is pegged at 19.7%, higher than the industry average of 12.3%.
The Zacks Consensus Estimate for 2022 and 2023 earnings per share is pegged at $4.99 and $6.20, respectively, indicating a year-over-year increase of nearly 13.1% and 24.1%, respectively.
This Zacks Rank #3 (Hold) insurer is well poised to grow on the back of solid performance across its Personal Lines, Commercial Lines and Property operating segments.
Banking on higher net premiums earned, improved investment income, increased fees and other revenues and service revenues, the top-line increased at a five-year CAGR (2017-2021) of 12.2%.
The Personal Lines business accounted for the lion’s share of total net premiums written in 2021. The solid performance of personal auto and special lines products is likely to drive this segment.
Growth in all business market targets, increase in transportation network company (TNC) business, increased quote volume and rate of conversion are likely to drive Commercial Lines business.
The acquisition of Protective Insurance Corporation in June 2021 expanded the insurer’s portfolio of offerings to a larger fleet, workers’ compensation coverage for trucking and public transportation fleets, along with trucking industry independent contractors and affinity programs. Protective Insurance represented 1% of companywide net premiums written and 6% of Commercial Lines net premiums written from the date of acquisition.
Both Commercial Lines business and Property businesses have reinsurance programs, which are intended to reduce overall risk, protect capital from the costs associated with catastrophic events, and manage exposure in commercial auto, TNC, BOP, and workers’ compensation products.
In January 2022, the Property business entered into a new aggregate excess of loss program for the 2022 accident year, where the first layer has a retention threshold of $575 million and provides $75 million of coverage and the second layer has a retention threshold of $650 million and provides $100 million of coverage.
Progressive boasts an impressive solvency level as well. PGR exited 2021 with cash and cash equivalents, which increased more than two-fold year over year.
Stocks to Consider
Some better-ranked insurers include Kinsale Capital Group (KNSL - Free Report) , United Fire Group (UFCS - Free Report) and Cincinnati Financial (CINF - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinsale Capital’s earnings surpassed estimates in each of the last four quarters, the average beat being 32.04%. In the past year, Kinsale Capital has rallied 20.1%.
The Zacks Consensus Estimate for KNSL’s 2022 and 2023 earnings has moved 3.8% and 3.5% north, respectively, in the past seven days.
United Fire’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 275.45%. In the past year, United Fire has declined 21.5%.
The Zacks Consensus Estimate for UFCS’ 2022 and 2023 earnings has moved 122.2% and 76.9% north, respectively, in the past 30 days.
The bottom line of Cincinnati Financial surpassed earnings estimates in each of the last four quarters, the average being 38.48%. In the past year, the insurer has rallied 12.3%.
The Zacks Consensus Estimate for Cincinnati Financial’s 2022 and 2023 earnings has moved 5.7% and 5.5% north, respectively, in the past 30 days.