Core Viewpoint - Progressive is expected to show positive earnings growth in its upcoming report, with a projected EPS of $3.99, reflecting a 6.97% increase year-over-year, and revenue forecasted at $20.59 billion, indicating a 20.5% growth compared to the same quarter last year [2]. Financial Performance - The stock price of Progressive recently closed at $273.43, down by 1.83% from the previous day, while the company has seen a 13.66% increase in stock price over the past month [1]. - For the full year, earnings are projected at $14.79 per share and revenue at $87.49 billion, showing increases of 5.27% and 16.48% respectively from the previous year [3]. Analyst Estimates - Recent revisions to analyst estimates for Progressive indicate a positive outlook, with a 5.43% upward shift in the Zacks Consensus EPS estimate over the past month [6]. - The current Zacks Rank for Progressive is 2 (Buy), suggesting a favorable investment sentiment [6]. Valuation Metrics - Progressive has a Forward P/E ratio of 18.83, which is higher than the industry average of 11.08 [7]. - The company also has a PEG ratio of 1.76, compared to the industry average PEG ratio of 1.94, indicating a relatively favorable valuation considering expected earnings growth [8]. Industry Context - The Insurance - Property and Casualty industry, to which Progressive belongs, ranks in the top 18% of all industries according to the Zacks Industry Rank, which is based on the average Zacks Rank of individual stocks within the industry [9].

Industry Overview - The car insurance industry has significantly benefited from rising insurance prices, with the Zacks Insurance – Property and Casualty industry group ranking in the top 18% out of approximately 250 industries, showing relative strength at the start of the year [8] - Auto insurance rates in the US have surged by 55% over the past three years, marking the largest increase since the 1970s, driven by higher traffic levels and repair costs [7][6] Company Performance - The Progressive Corporation (PGR) has outperformed the S&P 500 with a remarkable 1,226% gain over the last decade, continuing its strong performance with an 18% return year-to-date [10][12] - PGR is expected to achieve revenue growth of 16.5%, reaching $87.5 billion this year, supported by higher premiums and a strong product portfolio [15] - Analysts have increased full-year EPS estimates for PGR by 5.79% in the past 60 days, with the 2025 Zacks Consensus Estimate at $14.79 per share, reflecting a 5.3% growth rate compared to the previous year [16]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Progressive (PGR) - Progressive currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4]. Performance Metrics - Over the past week, PGR shares increased by 1.37%, while the Zacks Insurance - Property and Casualty industry declined by 1.18% [6]. - In a longer timeframe, PGR's monthly price change is 13.66%, significantly outperforming the industry's 1.72% [6]. - Over the last quarter, PGR shares rose by 6.06%, and over the past year, they increased by 44.93%, compared to the S&P 500's movements of -0.17% and 18.49%, respectively [7]. Trading Volume - PGR's average 20-day trading volume is 2,397,913 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the past two months, 8 earnings estimates for PGR have been revised upwards, while only 1 has been revised downwards, leading to an increase in the consensus estimate from $13.98 to $14.79 [10]. - For the next fiscal year, 6 estimates have moved upwards with no downward revisions during the same period [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, PGR is positioned as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [12].

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Progressive (PGR) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [4] - Progressive's historical EPS growth rate is 7.5%, but projected EPS growth for this year is 4.5%, surpassing the industry average of 4.2% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for assessing a growth stock's efficiency [6] - Progressive's S/TA ratio is 0.75, indicating it generates $0.75 in sales for every dollar in assets, significantly higher than the industry average of 0.35 [6] Group 4: Sales Growth - Sales growth is another key indicator, with Progressive expected to achieve a 16.6% sales growth this year, compared to the industry average of 7.3% [7] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [8] - The current-year earnings estimates for Progressive have increased by 4.6% over the past month, indicating positive momentum [8] Group 6: Overall Assessment - Progressive has earned a Growth Score of A and a Zacks Rank 2 due to positive earnings estimate revisions, suggesting it is a solid choice for growth investors [10]

Core Insights - The Progressive Corporation (PGR) reported strong financial results for January 2025, with net premiums written increasing by 18% year over year and an improvement in the combined ratio by 320 basis points to 84.1 [1][3]. Financial Performance - Earnings per share for January 2025 reached $1.90, reflecting a 61% year-over-year increase [3]. - Operating revenues rose by 22.8% year over year to $6.9 billion [3]. Policy Growth - Policies in force in the Personal Lines segment increased by 18% to 33.8 million [4]. - Direct Auto policies grew by 25% to 14.2 million, while Agency Auto policies increased by 18% to 9.9 million [4]. - The Commercial Auto segment rose by 5% to 1.1 million policies, and the Property business had 3.5 million policies in force, up 13% [4]. Market Position and Strategy - PGR is a leading auto insurance group with a strong market presence and a diverse product portfolio [2]. - The company is focusing on auto bundles, reducing exposure to risky properties, and enhancing segmentation through new product rollouts [6]. Underwriting and Financial Health - PGR's combined ratio has averaged less than 93% over the past decade, significantly better than the industry average of over 100% [7]. - The company maintains a solid cash flow, allowing for continuous investment in digitalization and operational improvements [8]. Analyst Sentiment and Growth Projections - Recent analyst estimates for 2025 earnings have increased by 1.7%, with a consensus estimate of $14.68 per share, indicating a 4.5% year-over-year growth [9][10]. - The long-term earnings growth rate is projected at 10.7%, surpassing the industry average of 7.6% [11]. Stock Performance - PGR shares have gained 11.8% year to date, outperforming the industry and broader market indices [12]. - The average price target for PGR suggests a potential upside of 5.7% from recent closing prices [17]. Valuation Metrics - PGR is currently trading at a price-to-book (P/B) multiple of 6.13, significantly higher than the industry average of 1.64, which is justified by its market leadership and growth prospects [19]. - Return on equity for the trailing 12 months was 33.8%, compared to the industry's 7.6%, indicating efficient use of shareholder funds [22].

Company Performance - Progressive's stock has increased by 12.7% over the past month and reached a new 52-week high of $270.79 [1] - Year-to-date, the stock has gained 12.5%, outperforming the Zacks Finance sector's 6.4% and the Zacks Insurance - Property and Casualty industry's 5.5% [1] Earnings and Revenue Expectations - For the current fiscal year, Progressive is projected to report earnings of $14.51 per share on revenues of $87.39 billion, reflecting a 3.27% increase in EPS and a 16.36% increase in revenues [3] - For the next fiscal year, earnings are expected to rise to $15.38 per share on $96.38 billion in revenues, indicating year-over-year changes of 6.05% and 10.28%, respectively [3] Valuation Metrics - Progressive has a Value Score of B, a Growth Score of A, and a Momentum Score of D, resulting in a combined VGM Score of A [6] - The stock trades at 18.6 times the current fiscal year EPS estimates, which is a premium compared to the peer industry average of 11 times [7] - On a trailing cash flow basis, the stock trades at 39.8 times versus the peer group's average of 11.5 times, with a PEG ratio of 0.68 [7] Zacks Rank - Progressive holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, indicating potential for further stock price appreciation [8] Industry Comparison - The Insurance - Property and Casualty industry is performing well, ranking in the top 26% of all industries, providing favorable conditions for both Progressive and its peer, Palomar Holdings, Inc. [11]

MAYFIELD VILLAGE, OHIO, Feb. 19, 2025 (GLOBE NEWSWIRE) -- The Progressive Corporation (NYSE:PGR) today reported the following results for the month ended January 31, 2025:  January(millions, except per share amounts and ratios; unaudited) 2025  2024 ChangeNet premiums written$6,481 $5,496 18 %Net premiums earned$6,586 $5,386 22 %Net income$1,117 $701 59 %Per share available to common shareholders$1.90 $1.18 61 %Total pretax net realized gains (losses) on securities$109 $17 NM  Combined ratio 84.1  87.3 (3.2 ...

Investors interested in Insurance - Property and Casualty stocks are likely familiar with Progressive (PGR) and Kinsale Capital Group, Inc. (KNSL) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong ...

Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either Progressive (PGR) or Kinsale Capital Group, Inc. (KNSL) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The prov ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Style ...