In the latest close session, Progressive (PGR) was down 1.29% at $201.17. This change was narrower than the S&P 500's 1.36% loss on the day. Elsewhere, the Dow saw a downswing of 1.64%, while the tech-heavy Nasdaq depreciated by 1.46%.
Shares of the insurer have depreciated by 1.98% over the course of the past month, outperforming the Finance sector's loss of 5.19%, and lagging the S&P 500's loss of 1.76%.
Investors will be eagerly watching for the performance of Progressive in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $4.69, marking a 0.86% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $22.65 billion, showing a 9.83% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $16.4 per share and a revenue of $92.24 billion, signifying shifts of -10.14% and +6.09%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Progressive. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.05% upward. Currently, Progressive is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Progressive is currently exchanging hands at a Forward P/E ratio of 12.43. Its industry sports an average Forward P/E of 10.14, so one might conclude that Progressive is trading at a premium comparatively.
We can also see that PGR currently has a PEG ratio of 8.88. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 30, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
