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Here's Why You Should Retain Progressive (PGR) Stock Now
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The Progressive Corporation’s (PGR - Free Report) compelling portfolio, leadership position, strength in Vehicle and Property businesses, healthy policies in force, retention and solid capital position make it worth holding on to in one’s portfolio.
PGR has a VGM Score of B. The Style Score rates stocks on the combined weighted styles, helping to identify those with the most attractive value, best growth and most promising momentum.
Zacks Rank and Price Performance
Progressive carries a Zacks Rank #3 (Hold). Shares have gained 15.3% in a year, outperforming the industry’s increase of 14.9%.
Image Source: Zacks Investment Research
Return on Equity
PGR’s trailing 12-month return on equity was 15.7%, which came ahead of the industry average of 6.7%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders.
Optimistic Growth Projections
The Zacks Consensus Estimate for Progressive’s 2023 earnings is pegged at $5.08 per share, indicating an increase of 25.1% on 17.1% higher revenues of $60.3 billion. The Zacks Consensus Estimate for 2024 earnings is pegged at $7.85, indicating an increase of 54.6% on 12.6% higher revenues of $67.9 billion.
The long-term earnings growth rate is currently pegged at 25.6%, better than the industry average of 13.6%. It has a Growth Score of A. This score analyzes the growth prospects of a company.
Earnings of this largest seller of motorcycle and boat policies have risen 6.9% over the last five years.
Growth Drivers
PGR’s premiums written increased 11% in the last 10 years and surpassed the industry average of 4%. On the strength of a compelling product portfolio, leadership position, healthy policies in force, better pricing and a solid retention ratio, PGR should continue to deliver improved premiums. Progressive is a market leader in commercial auto insurance and one of the top 15 homeowner carriers based on premiums written.
Policy life expectancy, a measure of customer retention, has improved in the last few years across all business lines. Strategic initiatives to provide consumers with a distinctive new auto insurance option along with competitive pricing should help Progressive retain its momentum. The insurer has been focusing on cross-selling homes with auto insurance.
PGR’s combined ratio averaged less than 93% in a decade and compared favorably with the industry average of more than 100%. Progressive is poised to deliver a better combined ratio, banking on prudent underwriting and favorable reserve development.
In tandem with the industry, PGR continues to invest heavily in technology. It estimates accelerated digitalization to improve the non-acquisition ratio in 2023.
Effective Capital Deployment
Banking on operational excellence, PGR has a solid capital position and engages in capital deployment. This, in turn, enhances shareholders’ value. Progressive has been paying dividends uninterruptedly since 1971, yielding 0.3%, and has a 24.2 million share buyback program under its authorization.
The Zacks Consensus Estimate for HCI Group’s 2023 and 2024 earnings indicates a year-over-year increase of 149.3% and 35.2%, respectively. HCI delivered a four-quarter average earnings surprise of 308.82%.
The consensus estimate for 2023 and 2024 earnings has moved up 22.7% and 14.1%, respectively, in the past seven days. Shares of HCI have gained 51.9% year to date.
RLI delivered a four-quarter average earnings surprise of 43.50%. Year to date, the insurer has gained 4.4%.
The Zacks Consensus Estimate for RLI’s 2023 earnings indicates a year-over-year increase of 4.1%.
Kinsale Capital delivered a four-quarter average earnings surprise of 14.77%. Year to date, the insurer has gained 41.1%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings indicates a year-over-year increase of 32.9% and 19.7%, respectively.
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Here's Why You Should Retain Progressive (PGR) Stock Now
The Progressive Corporation’s (PGR - Free Report) compelling portfolio, leadership position, strength in Vehicle and Property businesses, healthy policies in force, retention and solid capital position make it worth holding on to in one’s portfolio.
PGR has a VGM Score of B. The Style Score rates stocks on the combined weighted styles, helping to identify those with the most attractive value, best growth and most promising momentum.
Zacks Rank and Price Performance
Progressive carries a Zacks Rank #3 (Hold). Shares have gained 15.3% in a year, outperforming the industry’s increase of 14.9%.
Image Source: Zacks Investment Research
Return on Equity
PGR’s trailing 12-month return on equity was 15.7%, which came ahead of the industry average of 6.7%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders.
Optimistic Growth Projections
The Zacks Consensus Estimate for Progressive’s 2023 earnings is pegged at $5.08 per share, indicating an increase of 25.1% on 17.1% higher revenues of $60.3 billion. The Zacks Consensus Estimate for 2024 earnings is pegged at $7.85, indicating an increase of 54.6% on 12.6% higher revenues of $67.9 billion.
The long-term earnings growth rate is currently pegged at 25.6%, better than the industry average of 13.6%. It has a Growth Score of A. This score analyzes the growth prospects of a company.
Earnings of this largest seller of motorcycle and boat policies have risen 6.9% over the last five years.
Growth Drivers
PGR’s premiums written increased 11% in the last 10 years and surpassed the industry average of 4%. On the strength of a compelling product portfolio, leadership position, healthy policies in force, better pricing and a solid retention ratio, PGR should continue to deliver improved premiums. Progressive is a market leader in commercial auto insurance and one of the top 15 homeowner carriers based on premiums written.
Policy life expectancy, a measure of customer retention, has improved in the last few years across all business lines. Strategic initiatives to provide consumers with a distinctive new auto insurance option along with competitive pricing should help Progressive retain its momentum. The insurer has been focusing on cross-selling homes with auto insurance.
PGR’s combined ratio averaged less than 93% in a decade and compared favorably with the industry average of more than 100%. Progressive is poised to deliver a better combined ratio, banking on prudent underwriting and favorable reserve development.
In tandem with the industry, PGR continues to invest heavily in technology. It estimates accelerated digitalization to improve the non-acquisition ratio in 2023.
Effective Capital Deployment
Banking on operational excellence, PGR has a solid capital position and engages in capital deployment. This, in turn, enhances shareholders’ value. Progressive has been paying dividends uninterruptedly since 1971, yielding 0.3%, and has a 24.2 million share buyback program under its authorization.
Stocks to Consider
Some better-ranked stocks from the insurance industry are HCI Group (HCI - Free Report) , RLI Corporation (RLI - Free Report) and Kinsale Capital Group (KNSL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HCI Group’s 2023 and 2024 earnings indicates a year-over-year increase of 149.3% and 35.2%, respectively. HCI delivered a four-quarter average earnings surprise of 308.82%.
The consensus estimate for 2023 and 2024 earnings has moved up 22.7% and 14.1%, respectively, in the past seven days. Shares of HCI have gained 51.9% year to date.
RLI delivered a four-quarter average earnings surprise of 43.50%. Year to date, the insurer has gained 4.4%.
The Zacks Consensus Estimate for RLI’s 2023 earnings indicates a year-over-year increase of 4.1%.
Kinsale Capital delivered a four-quarter average earnings surprise of 14.77%. Year to date, the insurer has gained 41.1%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings indicates a year-over-year increase of 32.9% and 19.7%, respectively.