The Progressive Corporation’s (PGR Quick QuotePGR - Free Report) compelling product portfolio, leadership position, strength in the Vehicle and Property businesses, healthy policies in force, and retention bode well for growth. These, along with favorable growth estimates, make it worth retaining in one’s portfolio.

 

PGR has a VGM Score of B. This helps to identify stocks with the most attractive value, growth and momentum.

Progressive currently carries a Zacks Rank #2 (Buy). In the past year, the stock has gained 19.2% against the industry’s decline of 5.2%.

 

The Zacks Consensus Estimate for PGR’s 2022 earnings is pegged at $4.93, indicating an 11.8% increase from the year-ago reported figure on 11.1% higher revenues of $51.3 billion. The consensus estimate for 2023 earnings is pegged at $6.62, indicating a 12% increase from the year-ago reported figure on 34.3% higher revenues of $56.8 billion.

 

Long-term earnings growth is currently expected to be 28.8%, better than the industry average of 11.9%.

PGR’s net premiums written grew 11% in the last 10 years and surpassed the industry average of 4%. A compelling product portfolio, leadership position, healthy policies in force, better pricing and a solid retention ratio should help the company retain its momentum.

 

Progressive has been consistently putting in efforts to further penetrate customer households by cross-selling auto policies and Progressive Home Advantage. The company is the largest seller of motorcycle policies, a market leader in commercial auto insurance and one of the top 15 homeowner carriers based on premiums written. 

 

Policy life expectancy (“PLE”), a measure of customer retention, has been exhibiting improvement over the last few years across all of the company’s business lines. Strategic initiatives aimed at providing consumers with a distinctive new auto insurance option should help Progressive maintain its solid PLE.

 

PGR’s combined ratio averaged less than 93% in a decade, reflecting superior underwriting discipline and compared favorably with the industry average combined ratio of more than 100%. 

 

Banking on operational excellence, Progressive has been paying dividends uninterruptedly since 1971. PGR also has a 25-million share buyback program under its authorization.

Some other top-ranked stocks from the same space include Berkshire Hathaway (BRK.B Quick QuoteBRK.B - Free Report) , ProAssurance Corporation (PRA Quick QuotePRA - Free Report) and American Financial Group (AFG Quick QuoteAFG - Free Report) .

 

Berkshire Hathaway delivered a four-quarter average earnings surprise of 17.55%.  Year to date, the insurer has lost 6.6%.  BRK.B sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

 

The Zacks Consensus Estimate for BRK.B’s 2022 and 2023 earnings implies a respective increase of 16.7% and 4.2% from the year-ago reported number.

 

ProAssurance delivered a four-quarter average earnings surprise of 150.98%. Year to date, PRA has lost 21.2%. PRA sports a Zacks Rank #1.

 

The Zacks Consensus Estimate for PRA’s 2022 and 2023 earnings has moved 26% and 13.9% north, respectively, in the past 60 days. 

 

American Financial delivered a four-quarter average earnings surprise of 37.09%. Year to date, the insurer has lost 5.8%. AFG carries a Zacks Rank #2.

 

The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 2.8% and 3.8% north, respectively, in the past 60 days.