Progressive (PGR) Registers a Bigger Fall Than the Market: Important Facts to Note

Progressive (PGR) ended the recent trading session at $203.18, demonstrating a -1.53% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.74%. Elsewhere, the Dow saw a downswing of 1.53%, while the tech-heavy Nasdaq depreciated by 0.39%.

The insurer's stock has dropped by 2.76% in the past month, falling short of the Finance sector's gain of 3.93% and the S&P 500's gain of 6.06%.

The investment community will be closely monitoring the performance of Progressive in its forthcoming earnings report. The company's upcoming EPS is projected at $2.51, signifying a 402% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $17.77 billion, up 16.68% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.54 per share and revenue of $62.2 billion. These totals would mark changes of +88.87% and +0.72%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Progressive. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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, the Zacks Consensus EPS estimate has moved 1.41% higher. As of now, Progressive holds a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Progressive is presently trading at a Forward P/E ratio of 17.88. This expresses a premium compared to the average Forward P/E of 12.77 of its industry.

One should further note that PGR currently holds a PEG ratio of 0.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Insurance - Property and Casualty industry had an average PEG ratio of 1.56.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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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.

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