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Progressive (PGR) Advances But Underperforms Market: Key Facts

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Progressive (PGR - Free Report) ended the recent trading session at $251.31, demonstrating a +1.05% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.16%. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq gained 1.16%.

Shares of the insurer witnessed a gain of 12.16% over the previous month, beating the performance of the Finance sector with its gain of 5.48% and the S&P 500's gain of 3.48%.

Market participants will be closely following the financial results of Progressive in its upcoming release. The company's earnings per share (EPS) are projected to be $2.77, reflecting a 32.54% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $18.9 billion, up 20.3% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.19 per share and a revenue of $73.67 billion, indicating changes of +99.51% and +19.3%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Progressive. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.48% higher. As of now, Progressive holds a Zacks Rank of #3 (Hold).

In terms of valuation, Progressive is presently being traded at a Forward P/E ratio of 20.4. This denotes a premium relative to the industry's average Forward P/E of 13.6.

Investors should also note that PGR has a PEG ratio of 0.82 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PGR's industry had an average PEG ratio of 1.61 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 41, finds itself in the top 17% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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