Progressive (PGR) closed at $288.74 in the latest trading session, marking a +1.34% move from the prior day. This move outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq appreciated by 0.67%.
The the stock of insurer has risen by 0.75% in the past month, lagging the Finance sector's gain of 4.15% and the S&P 500's gain of 6.13%.
Analysts and investors alike will be keeping a close eye on the performance of Progressive in its upcoming earnings disclosure. The company is expected to report EPS of $3.85, up 45.28% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $21.47 billion, indicating a 17.6% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $16.12 per share and a revenue of $87.37 billion, demonstrating changes of +14.73% and +16.33%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Progressive. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.24% higher within the past month. As of now, Progressive holds a Zacks Rank of #3 (Hold).
Investors should also note Progressive's current valuation metrics, including its Forward P/E ratio of 17.67. For comparison, its industry has an average Forward P/E of 12.12, which means Progressive is trading at a premium to the group.
It's also important to note that PGR currently trades at a PEG ratio of 1.73. 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 industry had an average PEG ratio of 2.78 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 55, finds itself in the top 23% echelons 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.
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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