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Progressive (PGR) Stock Drops Despite Market Gains: Important Facts to Note

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Progressive (PGR - Free Report) closed the latest trading day at $243.68, indicating a -0.76% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 1%. On the other hand, the Dow registered a gain of 0.78%, and the technology-centric Nasdaq increased by 1.51%.

The insurer's stock has climbed by 2.43% in the past month, exceeding the Finance sector's loss of 0.44% and the S&P 500's loss of 2.14%.

Investors will be eagerly watching for the performance of Progressive in its upcoming earnings disclosure. In that report, analysts expect Progressive to post earnings of $3.44 per share. This would mark year-over-year growth of 16.22%. At the same time, our most recent consensus estimate is projecting a revenue of $19.81 billion, reflecting a 19.44% rise from the equivalent quarter last year.

Investors might also notice recent changes to analyst estimates for Progressive. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 1.2% higher within the past month. Progressive currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Progressive currently has a Forward P/E ratio of 17.52. This signifies a premium in comparison to the average Forward P/E of 11.68 for its industry.

Also, we should mention that PGR has a PEG ratio of 0.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Insurance - Property and Casualty was holding an average PEG ratio of 1.44 at yesterday's closing price.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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