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Progressive (PGR) Exceeds Market Returns: Some Facts to Consider

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In the latest market close, Progressive (PGR - Free Report) reached $210.75, with a +1.21% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.25%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.03%.

Heading into today, shares of the insurer had gained 0.61% over the past month, outpacing the Finance sector's loss of 2.3% and lagging the S&P 500's gain of 3.34% in that time.

The investment community will be paying close attention to the earnings performance of Progressive in its upcoming release. The company's earnings per share (EPS) are projected to be $2.32, reflecting a 364% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $17.92 billion, indicating a 17.72% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $11.46 per share and revenue of $73.09 billion, which would represent changes of +87.56% and +18.35%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Progressive. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.64% lower within the past month. Progressive is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Progressive's current valuation metrics, including its Forward P/E ratio of 18.17. This denotes a premium relative to the industry's average Forward P/E of 12.3.

Investors should also note that PGR has a PEG ratio of 0.79 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Insurance - Property and Casualty industry had an average PEG ratio of 1.49.

The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 20, placing it within the top 8% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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