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Progressive (PGR) Outperforms Broader Market: What You Need to Know

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The most recent trading session ended with Progressive (PGR - Free Report) standing at $268.88, reflecting a +0.76% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.56%. Meanwhile, the Dow gained 0.42%, and the Nasdaq, a tech-heavy index, added 0.83%.

The insurer's shares have seen an increase of 9.9% over the last month, surpassing the Finance sector's gain of 4.42% and the S&P 500's gain of 3.11%.

The upcoming earnings release of Progressive will be of great interest to investors. It is anticipated that the company will report an EPS of $3.16, marking a 6.76% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $19.84 billion, reflecting a 19.62% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $13.20 per share and revenue of $74.35 billion, which would represent changes of +116.04% and +20.4%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.37% upward. Progressive currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Progressive is presently trading at a Forward P/E ratio of 20.22. This expresses a premium compared to the average Forward P/E of 14.38 of its industry.

We can additionally observe that PGR currently boasts a PEG ratio of 0.74. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PGR's industry had an average PEG ratio of 1.5 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% 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.

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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