In the latest market close, Progressive (PGR – Free Report) reached $242.28, with a +1.12% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 1.11% for the day. On the other hand, the Dow registered a loss of 0.42%, and the technology-centric Nasdaq decreased by 1.89%.
The the stock of insurer has fallen by 3.34% in the past month, leading the Finance sector’s loss of 3.95% and undershooting the S&P 500’s loss of 1.7%.
Investors will be eagerly watching for the performance of Progressive in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.44, indicating a 16.22% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $19.91 billion, up 20.04% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Progressive. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 witnessed a 1.16% increase. Progressive is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Progressive is currently being traded at a Forward P/E ratio of 17.14. This expresses a premium compared to the average Forward P/E of 11.21 of its industry.
We can additionally observe that PGR currently boasts a PEG ratio of 0.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Insurance – Property and Casualty industry had an average PEG ratio of 1.39 as trading concluded yesterday.
The Insurance – Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% 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.
To follow PGR in the coming trading sessions, be sure to utilize Zacks.com.
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