Progressive (PGR) Increases Despite Market Slip: Here's What You Need to Know
Progressive (PGR) ended the recent trading session at $209.47, demonstrating a +1.93% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.77%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.92%.
The insurer's shares have seen a decrease of 6.01% over the last month, not keeping up with the Finance sector's loss of 3.48% and the S&P 500's gain of 0.96%.
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 $4.26 per share. This would mark year-over-year growth of 5.19%. Our most recent consensus estimate is calling for quarterly revenue of $23.35 billion, up 5.11% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.9 per share and a revenue of $92.41 billion, indicating changes of -1.92% and +6.29%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Progressive. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.9% higher. Right now, Progressive possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Progressive currently has a Forward P/E ratio of 11.48. This valuation marks a premium compared to its industry average Forward P/E of 10.78.
Investors should also note that PGR has a PEG ratio of 2.63 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Insurance - Property and Casualty industry had an average PEG ratio of 1.64 as trading concluded yesterday.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 63, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
