Progressive (PGR) closed the most recent trading day at $243.73, moving -1.43% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.82%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 1.77%.
Shares of the insurer witnessed a loss of 5.74% over the previous month, trailing the performance of the Finance sector with its gain of 0.44% and the S&P 500's gain of 0.8%.
The investment community will be paying close attention to the earnings performance of Progressive in its upcoming release. The company is expected to report EPS of $3.16, up 6.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.84 billion, up 19.62% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.20 per share and a revenue of $74.35 billion, representing changes of +116.04% and +20.4%, respectively, from the prior year.
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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.37% rise in the Zacks Consensus EPS estimate. Right now, Progressive possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Progressive is currently trading at a Forward P/E ratio of 18.74. This denotes a premium relative to the industry's average Forward P/E of 13.59.
We can additionally observe that PGR currently boasts a PEG ratio of 0.68. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. PGR's industry had an average PEG ratio of 1.4 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 26, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
