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Progressive (PGR) Gains But Lags Market: What You Should Know

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Progressive (PGR - Free Report) closed at $235.78 in the latest trading session, marking a +0.07% move from the prior day. This change lagged the S&P 500's 0.16% gain on the day. Meanwhile, the Dow experienced a rise of 0.86%, and the technology-dominated Nasdaq saw a decrease of 0.38%.

Coming into today, shares of the insurer had lost 6.43% in the past month. In that same time, the Finance sector lost 5.04%, while the S&P 500 lost 2.2%.

The investment community will be closely monitoring the performance of Progressive in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $3.44, reflecting a 16.22% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $19.8 billion, up 19.36% from the prior-year quarter.

It's also important for investors to be aware of any recent modifications to analyst estimates for Progressive. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.57% increase. At present, Progressive boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Progressive is currently exchanging hands at a Forward P/E ratio of 16.8. This denotes a premium relative to the industry's average Forward P/E of 11.21.

Meanwhile, PGR's PEG ratio is currently 0.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Insurance - Property and Casualty industry had an average PEG ratio of 1.43.

The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 21, placing it within the top 9% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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