Progressive (PGR) closed the most recent trading day at $245.47, moving -1.13% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.47%. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.94%.
Prior to today's trading, shares of the insurer had gained 0.46% lagged the Finance sector's gain of 2.42% and the S&P 500's gain of 2.32%.
Investors will be eagerly watching for the performance of Progressive in its upcoming earnings disclosure. The company is predicted to post an EPS of $4.07, indicating a 13.69% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $22.45 billion, showing a 15.55% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $17.68 per share and revenue of $87.48 billion, indicating changes of +25.84% and +16.47%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Progressive. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, the Zacks Consensus EPS estimate has moved 1.13% higher. Progressive is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Progressive is presently trading at a Forward P/E ratio of 14.05. This expresses a premium compared to the average Forward P/E of 11.55 of its industry.
One should further note that PGR currently holds a PEG ratio of 1.44. 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 2.49 as trading concluded yesterday.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 32, finds itself in the top 13% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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