In the latest close session, Progressive (PGR) was down 1.09% at $243.26. This move lagged the S&P 500's daily gain of 0.27%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.37%.
The insurer's stock has climbed by 0.43% in the past month, falling short of the Finance sector's gain of 2.38% and the S&P 500's gain of 1.85%.
The investment community will be paying close attention to the earnings performance of Progressive in its upcoming release. In that report, analysts expect Progressive to post earnings of $4.07 per share. This would mark year-over-year growth of 13.69%. In the meantime, our current consensus estimate forecasts the revenue to be $22.45 billion, indicating a 15.55% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $17.68 per share and revenue of $87.44 billion, indicating changes of +25.84% and +16.42%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Progressive. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, there's been a 1.11% rise in the Zacks Consensus EPS estimate. Right now, Progressive possesses a Zacks Rank of #2 (Buy).
Digging into valuation, Progressive currently has a Forward P/E ratio of 13.91. This signifies a premium in comparison to the average Forward P/E of 11.73 for its industry.
We can additionally observe that PGR currently boasts a PEG ratio of 1.43. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Insurance - Property and Casualty was holding an average PEG ratio of 2.43 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 37, putting it in the top 15% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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