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Here's Why You Should Hold Progressive (PGR) in Your Portfolio
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Progressive (PGR - Free Report) is well-poised for growth, riding on solid policies in force, competitive rate and prudent underwriting and a sturdy capital position. The expected long-term earnings growth rate is pegged at 6.1%. It carries a favorable Growth Score of B. Growth Score analyzes the growth prospects.
The company has been effectively improving its return on equity (ROE) over the years. ROE of 28.9% in the trailing twelve months was better than the industry average of 5.6%, reflecting the company’s efficiency in utilizing shareholders’ fund.
The company has a solid track of returning value to shareholders via share buybacks and dividends. Progressive shareholder returns were 25.1%, outperforming 11.7% for the S&P 500 during 2014-2019.
Shares of Progressive have rallied 35.4% year to date against with the industry's decline of 3.8% and the Finance sector’s decrease of 5.4%. The Zacks S&P 500 composite has risen 16.4% in the said time frame.
As a leading independent agency writer of private passenger auto coverage, Progressive is likely to generate improved premiums on the strength of expansive multi-product lineup and solid policies in force; focus on becoming a one-stop insurance destination by bundling products, and achieve leadership in underwriting technology and application of quantitative analytics in pricing and risk selection.
Riding on prudent underwriting, its combined ratio has averaged less than 93% over the past 10 years (2009-2019), comparing favorably with the industry average of more than 100%.
Progressive has been recording expansion in margins. Leveraging scale and capitalizing on technology to lower operating expenses should help it retain the momentum.
This Zacks Rank #3 (Hold) insurer has been strengthening its balance sheet. Both its leverage ratio and times interest earned has been improving; ensuring that Progressive will be able to meet current obligations without any difficulties.
The company currently has an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all three factors.
Stocks to Consider
Some better-ranked companies from the same space are Alleghany , The Hanover Insurance Group (THG - Free Report) and American Financial Group (AFG - Free Report) .
Alleghany delivered an earnings surprise of 195.85% in the last reported quarter. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank.
The Hanover Insurance Group delivered an earnings surprise of 9.85% in the last reported quarter. It currently carries a Zacks Rank #2 (Buy).
American Financial delivered an earnings surprise of 58.06% in the last reported quarter. It currently carries a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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Here's Why You Should Hold Progressive (PGR) in Your Portfolio
Progressive (PGR - Free Report) is well-poised for growth, riding on solid policies in force, competitive rate and prudent underwriting and a sturdy capital position. The expected long-term earnings growth rate is pegged at 6.1%. It carries a favorable Growth Score of B. Growth Score analyzes the growth prospects.
The company has been effectively improving its return on equity (ROE) over the years. ROE of 28.9% in the trailing twelve months was better than the industry average of 5.6%, reflecting the company’s efficiency in utilizing shareholders’ fund.
The company has a solid track of returning value to shareholders via share buybacks and dividends. Progressive shareholder returns were 25.1%, outperforming 11.7% for the S&P 500 during 2014-2019.
Shares of Progressive have rallied 35.4% year to date against with the industry's decline of 3.8% and the Finance sector’s decrease of 5.4%. The Zacks S&P 500 composite has risen 16.4% in the said time frame.
As a leading independent agency writer of private passenger auto coverage, Progressive is likely to generate improved premiums on the strength of expansive multi-product lineup and solid policies in force; focus on becoming a one-stop insurance destination by bundling products, and achieve leadership in underwriting technology and application of quantitative analytics in pricing and risk selection.
Riding on prudent underwriting, its combined ratio has averaged less than 93% over the past 10 years (2009-2019), comparing favorably with the industry average of more than 100%.
Progressive has been recording expansion in margins. Leveraging scale and capitalizing on technology to lower operating expenses should help it retain the momentum.
This Zacks Rank #3 (Hold) insurer has been strengthening its balance sheet. Both its leverage ratio and times interest earned has been improving; ensuring that Progressive will be able to meet current obligations without any difficulties.
The company currently has an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all three factors.
Stocks to Consider
Some better-ranked companies from the same space are Alleghany , The Hanover Insurance Group (THG - Free Report) and American Financial Group (AFG - Free Report) .
Alleghany delivered an earnings surprise of 195.85% in the last reported quarter. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank.
The Hanover Insurance Group delivered an earnings surprise of 9.85% in the last reported quarter. It currently carries a Zacks Rank #2 (Buy).
American Financial delivered an earnings surprise of 58.06% in the last reported quarter. It currently carries a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>