Progressive (PGR) closed at $244.98 in the latest trading session, marking a -1.76% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.33% for the day. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.22%.
The insurer's shares have seen a decrease of 7.09% over the last month, not keeping up with the Finance sector's gain of 3.2% and the S&P 500's gain of 4.07%.
The investment community will be paying close attention to the earnings performance of Progressive in its upcoming release. The company is slated to reveal its earnings on July 16, 2025. It is anticipated that the company will report an EPS of $4.3, marking a 62.26% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $21.52 billion, indicating a 17.85% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $16.63 per share and a revenue of $87.53 billion, demonstrating changes of +18.36% and +16.54%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Progressive. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.83% upward. Progressive is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Progressive is currently trading at a Forward P/E ratio of 15. This represents a premium compared to its industry average Forward P/E of 11.62.
One should further note that PGR currently holds a PEG ratio of 1.57. 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. PGR's industry had an average PEG ratio of 2.63 as of yesterday's close.
The Insurance - Property and Casualty industry is part of the Finance sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 32% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The Progressive Corporation (PGR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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