In the latest close session, Progressive (PGR) was down 1.8% at $206.80. The stock trailed the S&P 500, which registered a daily gain of 0.83%. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq gained 1.38%.
The insurer's stock has climbed by 4.11% in the past month, exceeding the Finance sector's loss of 5.75% and the S&P 500's loss of 2.65%.
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 $4.69 per share. This would mark year-over-year growth of 0.86%. Alongside, our most recent consensus estimate is anticipating revenue of $22.65 billion, indicating a 9.84% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $16.37 per share and revenue of $92.19 billion. These totals would mark changes of -10.3% and +6.03%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Progressive. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 moved 0.89% higher. 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 12.86 right now. For comparison, its industry has an average Forward P/E of 10.38, which means Progressive is trading at a premium to the group.
One should further note that PGR currently holds a PEG ratio of 9.19. 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 average PEG ratio for the Insurance - Property and Casualty industry stood at 2.05 at the close of the market yesterday.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 27, finds itself in the top 12% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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