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Why Progressive (PGR) Outpaced the Stock Market Today

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Progressive (PGR - Free Report) closed the most recent trading day at $209.22, moving +1.07% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.12% for the day. Elsewhere, the Dow saw an upswing of 0.34%, while the tech-heavy Nasdaq depreciated by 0.07%.

Coming into today, shares of the insurer had lost 1.31% in the past month. In that same time, the Finance sector gained 6.78%, while the S&P 500 gained 4.99%.

The investment community will be paying close attention to the earnings performance of Progressive in its upcoming release. The company's upcoming EPS is projected at $2.41, signifying a 382% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $17.78 billion, indicating a 16.78% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $11.46 per share and a revenue of $72.73 billion, demonstrating changes of +87.56% and +17.77%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Progressive. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.71% higher within the past month. Currently, Progressive is carrying a Zacks Rank of #1 (Strong Buy).

Investors should also note Progressive's current valuation metrics, including its Forward P/E ratio of 18.06. This indicates a premium in contrast to its industry's Forward P/E of 12.79.

We can also see that PGR currently has a PEG ratio of 0.8. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Insurance - Property and Casualty industry was having an average PEG ratio of 1.25.

The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 33, placing it within the top 14% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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