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

Progressive (PGR) closed at $223.91 in the latest trading session, marking a +1.14% move from the prior day. This change outpaced the S&P 500's 1.06% gain on the day. Elsewhere, the Dow gained 1.18%, while the tech-heavy Nasdaq added 1.4%.

The stock of insurer has risen by 4.05% in the past month, leading the Finance sector's gain of 0.85% and the S&P 500's gain of 2.46%.

Investors will be eagerly watching for the performance of Progressive in its upcoming earnings disclosure. In that report, analysts expect Progressive to post earnings of $3.98 per share. This would mark a year-over-year decline of 1.73%. Alongside, our most recent consensus estimate is anticipating revenue of $23.29 billion, indicating a 4.83% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $17.74 per share and revenue of $92.26 billion, which would represent changes of -2.79% and +6.12%, respectively, from the prior year.

Any recent changes to analyst estimates for Progressive should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 1.42% increase. Progressive currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Progressive is at present trading with a Forward P/E ratio of 12.48. This valuation marks a premium compared to its industry average Forward P/E of 11.55.

It is also worth noting that PGR currently has a PEG ratio of 2.95. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. PGR's industry had an average PEG ratio of 1.71 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. With its current Zacks Industry Rank of 60, this industry ranks in the top 25% of all industries, numbering over 250.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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