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Bull of the Day: The Progressive Corp. (PGR)

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The Progressive Corp (PGR - Free Report) , a current Zacks Rank #1 (Strong Buy), is a massive American insurance company. Analysts have taken their expectations higher across the board, particularly following its latest quarterly release back in mid-October.

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Image Source: Zacks Investment Research

In addition to favorable earnings estimate revisions, the company resides within the Zacks Insurance – Property & Casualty industry, currently ranked in the top 13% of all Zacks industries. Let’s take a deeper look at the company.

The Progressive Corp.

Progressive snapped a streak of negative surprises in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 20% and posting a modest 0.3% revenue surprise.

Drilling a bit deeper, Progressive saw total Policies in Force grow 10% from the year-ago period, reflecting continued business momentum. PGR shares enjoyed buying pressure following the print, now heading toward all-time highs.

It’s worth noting that Progressive shares have been monster performers in general over the last decade, delivering a remarkable 23% annualized return vs. the S&P 500’s 12.3%.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition, the stock could be a target among growth-focused investors, as reflected by its Style Score of “A” for Growth. Consensus estimates for its current fiscal year (FY23) suggest 34% earnings growth paired with an 18% sales climb, with expectations for FY24 suggesting earnings and revenue growth rates of 49% and 13%, respectively.

The company’s revenue growth has remained steady, as we can see in the annual chart below. Please note that the 2023 value is on a trailing twelve-month basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

The Progressive Corp. (PGR - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).

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