Progressive (PGR) ended the recent trading session at $252.32, demonstrating a +0.05% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 2.12%. Elsewhere, the Dow saw a downswing of 1.51%, while the tech-heavy Nasdaq depreciated by 3.26%.
Heading into today, shares of the insurer had gained 19.58% over the past month, outpacing the Finance sector's gain of 7.46% and the S&P 500's gain of 5.78% in that time.
Investors will be eagerly watching for the performance of Progressive in its upcoming earnings disclosure. On that day, Progressive is projected to report earnings of $2.77 per share, which would represent year-over-year growth of 32.54%. Alongside, our most recent consensus estimate is anticipating revenue of $18.9 billion, indicating a 20.3% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.20 per share and a revenue of $73.58 billion, indicating changes of +99.67% and +19.15%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Progressive. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.52% higher. Progressive is currently a Zacks Rank #2 (Buy).
Investors should also note Progressive's current valuation metrics, including its Forward P/E ratio of 20.68. Its industry sports an average Forward P/E of 13.48, so one might conclude that Progressive is trading at a premium comparatively.
Investors should also note that PGR has a PEG ratio of 0.83 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Insurance - Property and Casualty was holding an average PEG ratio of 1.64 at yesterday's closing price.
The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 26, placing it within the top 11% of over 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.
To follow PGR in the coming trading sessions, be sure to utilize Zacks.com.
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