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2025 has already been a challenging year for the market, but one investment factor has outperformed: low volatility. Stocks with historically lower volatility have significantly outperformed, proving to be the market’s strongest segment amid uncertainty.
One of my top picks in this group is TheProgressive ((PGR - Free Report) ), a stock I have consistently recommended over the past year and one that remains an attractive investment today. It not only delivers strong returns with lower volatility and defensive positioning but also holds a top Zacks Rank and steady growth forecasts, making it a compelling choice for investors looking for stability and upside.
Image Source: Zacks Investment Research
Analysts Continue to Raise PGR Earnings Estimates
The chart below illustrates exactly why I’ve been highlighting The Progressive stock for more than a year—consistent upward revisions to its earnings estimates. Earnings revisions are the foundation of Zacks’ stock analysis, and PGR is a prime example of why they matter. Analysts began raising estimates in mid-2023, and since then, the stock has more than doubled.
More recently, analysts have unanimously raised their earnings forecasts across multiple timeframes. In just the last two months, estimates have been revised higher by as much as 17.5%, and even in the past week, projections have continued to climb. Not surprisingly, PGR enjoys a Zacks Rank #1 (Strong Buy) rating.
Progressive has also been on an encouraging streak of earnings beats. The company has exceeded analyst expectations for five consecutive quarters, and based on the Zacks Earnings ESP, it is projected to beat again next quarter by 1.27%.
Image Source: Zacks Investment Research
The Progressive has a Reasonable Valuation
The Progressive currently trades at a one-year forward earnings multiple of 18.7x, which is only slightly above its 10-year median of 17.7x. This narrow spread suggests that, despite its strong performance, the stock is not excessively expensive relative to its historical valuation.
Such a reasonable valuation reinforces Progressive’s appeal as a sound investment, offering both attractive returns and growth potential without overpaying.
Image Source: Zacks Investment Research
Should Investors Buy Shares in PGR?
Progressive’s combination of low volatility, strong earnings growth, and reasonable valuation makes it a standout stock in today’s uncertain market. With analysts continuing to raise earnings estimates and the company consistently delivering earnings beats, PGR remains one of the most attractive defensive plays available.
Despite its impressive rally, the stock is not overvalued relative to its historical norms, suggesting there is still room for upside. Add in its top Zacks Rank and strong industry positioning as the nation’s second largest auto insurer, the Progressive offers a compelling mix of stability, steady growth, and resilience in a challenging market environment.
For investors looking to outperform while minimizing risk, PGR remains a top-tier choice.
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Bull of the Day: The Progressive (PGR)
2025 has already been a challenging year for the market, but one investment factor has outperformed: low volatility. Stocks with historically lower volatility have significantly outperformed, proving to be the market’s strongest segment amid uncertainty.
One of my top picks in this group is The Progressive ((PGR - Free Report) ), a stock I have consistently recommended over the past year and one that remains an attractive investment today. It not only delivers strong returns with lower volatility and defensive positioning but also holds a top Zacks Rank and steady growth forecasts, making it a compelling choice for investors looking for stability and upside.
Image Source: Zacks Investment Research
Analysts Continue to Raise PGR Earnings Estimates
The chart below illustrates exactly why I’ve been highlighting The Progressive stock for more than a year—consistent upward revisions to its earnings estimates. Earnings revisions are the foundation of Zacks’ stock analysis, and PGR is a prime example of why they matter. Analysts began raising estimates in mid-2023, and since then, the stock has more than doubled.
More recently, analysts have unanimously raised their earnings forecasts across multiple timeframes. In just the last two months, estimates have been revised higher by as much as 17.5%, and even in the past week, projections have continued to climb. Not surprisingly, PGR enjoys a Zacks Rank #1 (Strong Buy) rating.
Progressive has also been on an encouraging streak of earnings beats. The company has exceeded analyst expectations for five consecutive quarters, and based on the Zacks Earnings ESP, it is projected to beat again next quarter by 1.27%.
Image Source: Zacks Investment Research
The Progressive has a Reasonable Valuation
The Progressive currently trades at a one-year forward earnings multiple of 18.7x, which is only slightly above its 10-year median of 17.7x. This narrow spread suggests that, despite its strong performance, the stock is not excessively expensive relative to its historical valuation.
Such a reasonable valuation reinforces Progressive’s appeal as a sound investment, offering both attractive returns and growth potential without overpaying.
Image Source: Zacks Investment Research
Should Investors Buy Shares in PGR?
Progressive’s combination of low volatility, strong earnings growth, and reasonable valuation makes it a standout stock in today’s uncertain market. With analysts continuing to raise earnings estimates and the company consistently delivering earnings beats, PGR remains one of the most attractive defensive plays available.
Despite its impressive rally, the stock is not overvalued relative to its historical norms, suggesting there is still room for upside. Add in its top Zacks Rank and strong industry positioning as the nation’s second largest auto insurer, the Progressive offers a compelling mix of stability, steady growth, and resilience in a challenging market environment.
For investors looking to outperform while minimizing risk, PGR remains a top-tier choice.