The Progressive Corporation (NYSE:PGR) is one of the 13 High-Quality S&P 500 Financial Stocks According to Hedge Funds. UBS Cuts Target on Progressive (PGR), Maintains Neutral Rating The Progressive Corporation (NYSE:PGR) saw mixed analyst sentiments on February 23, 2026. UBS analyst Brian Meredith lowered the price target on The Progressive Corporation (NYSE:PGR) from $226 to $218, while maintaining a Neutral rating on the shares. On the other hand, Morgan Stanley analyst Bob Huang reiterated a Sell rat ...

Core Viewpoint - Progressive Corporation has shown positive performance in its stock price, with a 1.7% increase since the last earnings report, outperforming the S&P 500 [1][2]. Earnings Performance - In Q4 2025, Progressive reported earnings per share of $4.67, exceeding the Zacks Consensus Estimate by 5.2%, and reflecting a year-over-year increase of 14.4% [3]. - Operating revenues for the quarter rose 10.6% year over year to $22.49 billion, surpassing the consensus estimate by 2.5% [3]. Premiums and Investment Gains - Net premiums written reached $19.5 billion, an 8% increase from $18.1 billion a year ago, while net premiums earned grew 10% to $21 billion, exceeding the Zacks Consensus Estimate of $20.9 billion [4]. - The company reported a net realized gain on securities of $257 million, a significant improvement from a loss of $53 million in the same quarter last year [4]. Full-Year Financial Highlights - For the full year, operating revenues increased by 15.7% to $86.9 billion, driven by a 15.3% rise in net premiums earned and a 26.5% increase in net investment income [5]. - Total expenses rose 13.5% to $73.4 billion, influenced by higher losses, policy acquisition costs, and other underwriting expenses [6]. Policies in Force - The number of policies in force in the Personal Lines segment increased by 11% year over year to 37.4 million, with notable growth in Direct Auto and Agency Auto segments [7]. Financial Metrics - As of December 30, 2025, Progressive's book value per share was $51.74, an 18.4% increase from $43.67 a year earlier, and the return on equity improved to 40.1% from 36.4% [8]. Estimate Trends - Following the earnings release, there has been an upward trend in consensus estimates, with a shift of 6.21% noted [9]. VGM Scores - Progressive holds a Growth Score of A, a Momentum Score of D, and a Value Score of B, resulting in an aggregate VGM Score of A, indicating strong overall performance [10]. Outlook - Estimates for Progressive have been trending upward, and the company holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [11]. Industry Performance - Progressive operates within the Zacks Insurance - Property and Casualty industry, where RLI Corp. has seen a 6.3% gain over the past month, reporting revenues of $448.73 million for the last quarter [12].

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Did you know Walmart’s advertising business accounted for about 30% of the company’s operating profit last year? Did you even know that Walmart has an advertising business?That stunning fact, unknown to many people (including me), exemplifies the conclusion of a new McKinsey study, published today. In the report, Inspired for business growth: How five companies beat the market, researchers at the consulting firm examined how big companies grow both revenue and profits impressively over time—no easy task.The ...

The Progressive Corporation (NYSE:PGR) is one of the Best Dip Stocks to Buy According to Hedge Funds. On February 18, The Progressive Corporation (NYSE:PGR) reported its January 2026 results. The company grew its net premiums written by 4% year-over-year to $6.735 billion and net premiums earned by 5% to $6.921 billion. The total net income for the month came in at $1.163 billion, reflecting 4% increase year-over-year. ​The pretax net realized gains on securities totaled $103 million for the month, refle ...

Core Insights - The Progressive Corporation (PGR) reported earnings per share of $1.98 for January 2026, reflecting a 4% year-over-year increase driven by higher revenues and investment income, despite rising expenses [1][7] Financial Performance - Total revenues for Progressive reached $7.5 billion, marking a 5.3% increase year over year, attributed to a 5% rise in premiums and a 16% increase in investment income [3][7] - Net premiums written were $6.7 billion, up 4% from $6.5 billion in the same month last year, while net premiums earned rose 5% to approximately $6.9 billion [2] - The combined ratio deteriorated by 30 basis points year over year to 84.4, indicating a slight increase in claims and expenses relative to premiums [2] Policy Growth - Policies in force (PIF) in the Vehicle business increased significantly, with Personal Auto segment policies rising 10% to 37.6 million and Direct Auto policies improving 14% to 16.1 million [4] - The Property business also saw growth, with 3.6 million policies in force, up 3% year over year [5] Investment Metrics - The book value per share increased by 16.4% to $53.24 as of January 31, 2026, compared to $45.75 a year earlier [5] - The return on equity for the trailing 12 months was 38.9%, up 130 basis points from 37.6% in January 2025 [5] - The debt-to-total-capital ratio improved by 230 basis points year over year to 18.1 as of January 31, 2026 [5] Market Performance - Progressive shares have experienced a decline of 24.6% over the past year, contrasting with the industry's growth of 3.5% [6]

Financial Performance - Progressive Corporation reported net premiums written of $6,735 million for January 2026, a 4% increase from $6,481 million in January 2025 [1] - Net premiums earned rose to $6,921 million, reflecting a 5% increase compared to $6,586 million in the previous year [1] - The company achieved a net income of $1,163 million, up 4% from $1,117 million year-over-year [1] - Earnings per share available to common shareholders increased to $1.98, a 4% rise from $1.90 in January 2025 [1] - Total pretax net realized gains on securities decreased to $103 million, down 6% from $109 million [1] - The combined ratio was reported at 84.4, slightly higher than 84.1 in the previous year [1] Policy Growth - The total number of policies in force reached 38,875 thousand, a 10% increase from 35,327 thousand in January 2025 [1] - Personal lines policies increased to 37,686 thousand, up 10% from 34,181 thousand [1] - Agency auto policies grew by 10% to 10,855 thousand, while direct auto policies saw a 14% increase to 16,164 thousand [1] - Special lines policies rose by 7% to 7,012 thousand, and property policies increased by 3% to 3,655 thousand [1] - Commercial lines policies also saw a 4% increase, reaching 1,189 thousand [1]

Core Viewpoint - The Progressive Corporation (NYSE:PGR) is recognized as a strong long-term investment option, particularly in the retirement stock category, with analysts maintaining positive ratings despite some price target adjustments. Group 1: Analyst Ratings and Price Targets - UBS has reduced its price target for Progressive Corporation to $226 from $234 while maintaining a Buy rating, citing steady revenue growth and stronger margins for insurance brokers through 2026 [1] - Goldman Sachs has reiterated a Buy rating with a price target of $230, following solid results for December, including a 6% increase in net premiums written to $6.31 million and a 6% rise in net premiums earned to $7.12 million [2] - Keefe, Bruyette & Woods has maintained a Market Perform rating but lowered the price target to $225 from $252 due to concerns over moderation in Personal Auto Policies in force (PIF) growth [5] Group 2: Financial Performance - In December, net income increased by 22% to $1.14 million, while net premiums for the fourth quarter rose by 8% to $19.51 million, and net premiums earned increased by 10% to $21.1 million, with net income for the quarter up 25% to $2.95 million [3] - Goldman Sachs has highlighted stable earnings per share estimates for 2026, 2027, and 2028, and has increased its growth forecast for Personal Auto Policies in force by 30 basis points to 8.1%, supported by improved advertising efficiency [4] Group 3: Company Overview - The Progressive Corporation is a major American insurance holding company, recognized as the second-largest personal auto insurer and a leading commercial auto insurer, providing a range of insurance products directly to consumers and through agents [6]

Core Insights - Auto insurance premiums are rising across the United States, affecting even drivers with clean records, as insurers consider various factors beyond individual driving history [2][3] Industry Analysis - Insurers calculate rates based on regional repair costs, medical expense inflation, litigation trends, and regulatory processes, leading to continuous premium increases regardless of personal driving behavior [3][9][10] - Repair costs are a significant factor in premium growth, as modern vehicles with advanced technology are more expensive to repair after accidents [9] - Medical inflation is another pressure point, with healthcare costs rising faster than general inflation, necessitating higher payouts in insurance rate structures [10] - Litigation trends contribute to rising costs, with some regions experiencing more frequent lawsuits and larger jury awards, resulting in "social inflation" that affects all policyholders [11] Company Performance - Progressive Corp reported a 40.5% return on equity (ROE) with a quarterly earnings growth of 25.2%, while Allstate achieved a 34.5% ROE with an impressive 222% quarterly earnings growth [5][12] - Both companies have successfully passed rising repair and medical costs onto consumers while maintaining high profit margins [5][12] Investment Opportunity - The insurance sector is identified as a profitable investment opportunity due to its strong financial performance despite ongoing cost pressures [8]

Core Viewpoint - The Progressive Corporation (PGR) has significantly underperformed the broader market and its peers in the property and casualty insurance sector over the past year, despite reporting positive quarterly earnings results. Group 1: Company Overview - The Progressive Corporation is an insurance holding company based in Mayfield Village, Ohio, with a market capitalization of $118.6 billion, offering various insurance products including personal and commercial auto, property, and specialty property-casualty insurance [1]. Group 2: Stock Performance - PGR shares have declined by 19.6% over the past year, while the S&P 500 Index has increased by nearly 15.6% during the same period [2]. - Year-to-date in 2026, PGR stock is down 11.5%, contrasting with a 1.7% rise in the S&P 500 Index [2]. - Compared to the Invesco KBW Property & Casualty Insurance ETF, which gained about 5.8% over the past year, PGR's performance remains weak [3]. Group 3: Financial Results - On January 28, PGR reported Q4 results with an EPS of $4.45, reflecting a year-over-year increase of 12.1%, and adjusted revenue of $22.5 billion, surpassing Wall Street's expectations of $21.9 billion [5]. Group 4: Analyst Expectations - For the current fiscal year ending in December, analysts project PGR's EPS to decline by 11.1% to $16.23 on a diluted basis [6]. - Among 25 analysts covering PGR, the consensus rating is a "Moderate Buy," with a mix of ratings including eight "Strong Buy," two "Moderate Buy," 13 "Holds," one "Moderate Sell," and one "Strong Sell" [6]. - Citigroup analyst Matthew Heimermann maintained a "Buy" rating on PGR, lowering the price target to $261, indicating a potential upside of 29.5% from current levels [7].