In the latest trading session, Progressive (PGR) closed at $234.85, marking a +1.91% move from the previous day. The stock's change was more than the S&P 500's daily loss of 1.07%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, lost 1.69%.
The insurer's shares have seen an increase of 3.27% over the last month, surpassing the Finance sector's gain of 2.46% and the S&P 500's gain of 0.94%.
The upcoming earnings release of Progressive will be of great interest to investors. The company is predicted to post an EPS of $4.34, indicating a 6.37% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $22.29 billion, up 9.66% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.85 per share and revenue of $86.81 billion. These totals would mark changes of +27.05% and +15.58%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Progressive. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. Progressive is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Progressive has a Forward P/E ratio of 12.91 right now. This denotes a premium relative to the industry average Forward P/E of 11.54.
One should further note that PGR currently holds a PEG ratio of 1.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Insurance - Property and Casualty industry was having an average PEG ratio of 1.63.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 24, finds itself in the top 10% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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