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Progressive (PGR) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest trading session, Progressive (PGR - Free Report) closed at $251.10, marking a -0.51% move from the previous day. This move lagged the S&P 500's daily loss of 0.13%. Meanwhile, the Dow experienced a rise of 0.33%, and the technology-dominated Nasdaq saw a decrease of 0.39%.

Prior to today's trading, shares of the insurer had gained 0.95% over the past month. This has lagged the Finance sector's gain of 1.5% and the S&P 500's gain of 2.43% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Progressive in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.27, reflecting a 56.46% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.92 billion, up 20.44% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.95 per share and revenue of $73.91 billion. These totals would mark changes of +111.95% and +19.69%, respectively, from last year.

Any recent changes to analyst estimates for Progressive should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.14% increase. Currently, Progressive is carrying a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Progressive has a Forward P/E ratio of 19.5 right now. Its industry sports an average Forward P/E of 13.71, so one might conclude that Progressive is trading at a premium comparatively.

It is also worth noting that PGR currently has a PEG ratio of 0.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Insurance - Property and Casualty industry had an average PEG ratio of 1.5 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 19, finds itself in the top 8% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PGR in the coming trading sessions, be sure to utilize Zacks.com.


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