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Progressive (PGR) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Progressive (PGR - Free Report) closed at $256.31, marking a +0.33% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.13%. Elsewhere, the Dow saw an upswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.52%.

Shares of the insurer have appreciated by 8.3% over the course of the past month, outperforming the Finance sector's gain of 4.44% and the S&P 500's gain of 3.67%.

Market participants will be closely following the financial results of Progressive in its upcoming release. The company is predicted to post an EPS of $2.84, indicating a 35.89% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $18.83 billion, up 19.89% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.36 per share and a revenue of $73.67 billion, indicating changes of +102.29% and +19.3%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Progressive. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.27% rise in the Zacks Consensus EPS estimate. Right now, Progressive possesses a Zacks Rank of #3 (Hold).

Investors should also note Progressive's current valuation metrics, including its Forward P/E ratio of 20.67. For comparison, its industry has an average Forward P/E of 13.56, which means Progressive is trading at a premium to the group.

Meanwhile, PGR's PEG ratio is currently 0.83. 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. The Insurance - Property and Casualty industry had an average PEG ratio of 1.64 as trading concluded yesterday.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% of all 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.

To follow PGR in the coming trading sessions, be sure to utilize Zacks.com.


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