Progressive (PGR) closed at $224.86 in the latest trading session, marking a -1.06% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.79%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 1.38%.
The insurer's shares have seen an increase of 1.95% over the last month, not keeping up with the Finance sector's gain of 4.09% and outstripping the S&P 500's gain of 0.87%.
Analysts and investors alike will be keeping a close eye on the performance of Progressive in its upcoming earnings disclosure. The company is predicted to post an EPS of $4.34, indicating a 6.37% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $22.31 billion, up 9.75% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $17.86 per share and a revenue of $86.82 billion, demonstrating changes of +27.12% and +15.59%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Progressive. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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 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 0.3% lower within the past month. As of now, Progressive holds a Zacks Rank of #3 (Hold).
With respect to valuation, Progressive is currently being traded at a Forward P/E ratio of 12.73. This represents a premium compared to its industry average Forward P/E of 11.66.
We can also see that PGR currently has a PEG ratio of 1.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Insurance - Property and Casualty industry held an average PEG ratio of 1.63.
The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 27, placing it within the top 11% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much 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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