We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Progressive (PGR) Fell More Than Broader Market
Read MoreHide Full Article
Progressive (PGR - Free Report) closed at $280.96 in the latest trading session, marking a -1.63% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.61%. Elsewhere, the Dow saw a downswing of 1.91%, while the tech-heavy Nasdaq depreciated by 1.41%.
Shares of the insurer witnessed a gain of 7.75% over the previous month, trailing the performance of the Finance sector with its gain of 9.17% and the S&P 500's gain of 12.65%.
The investment community will be paying close attention to the earnings performance of Progressive in its upcoming release. On that day, Progressive is projected to report earnings of $3.53 per share, which would represent year-over-year growth of 33.21%. Meanwhile, the latest consensus estimate predicts the revenue to be $21.6 billion, indicating a 18.28% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.80 per share and revenue of $87.5 billion, which would represent changes of +12.46% and +16.5%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Progressive. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.81% higher. Progressive is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, Progressive is presently trading at a Forward P/E ratio of 18.07. This indicates a premium in contrast to its industry's Forward P/E of 12.
It's also important to note that PGR currently trades at a PEG ratio of 1.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Insurance - Property and Casualty industry currently had an average PEG ratio of 2.74 as of yesterday's close.
The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 49, positioning it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why Progressive (PGR) Fell More Than Broader Market
Progressive (PGR - Free Report) closed at $280.96 in the latest trading session, marking a -1.63% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.61%. Elsewhere, the Dow saw a downswing of 1.91%, while the tech-heavy Nasdaq depreciated by 1.41%.
Shares of the insurer witnessed a gain of 7.75% over the previous month, trailing the performance of the Finance sector with its gain of 9.17% and the S&P 500's gain of 12.65%.
The investment community will be paying close attention to the earnings performance of Progressive in its upcoming release. On that day, Progressive is projected to report earnings of $3.53 per share, which would represent year-over-year growth of 33.21%. Meanwhile, the latest consensus estimate predicts the revenue to be $21.6 billion, indicating a 18.28% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.80 per share and revenue of $87.5 billion, which would represent changes of +12.46% and +16.5%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Progressive. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.81% higher. Progressive is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, Progressive is presently trading at a Forward P/E ratio of 18.07. This indicates a premium in contrast to its industry's Forward P/E of 12.
It's also important to note that PGR currently trades at a PEG ratio of 1.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Insurance - Property and Casualty industry currently had an average PEG ratio of 2.74 as of yesterday's close.
The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 49, positioning it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.