Financial Performance - Total investment income for 2024 was $3.1 billion, up from $2.3 billion in 2023 and a loss of $0.7 billion in 2022[67] - On a pretax total return basis, the investment portfolio generated $3.3 billion in 2024, compared to $3.8 billion in 2023 and a loss of $4.3 billion in 2022[67] - The service businesses represented less than 1% of total revenues for 2024, 2023, and 2022, indicating minimal impact on overall operations[68] - The company’s liabilities for property-casualty losses and loss adjustment expenses are determined using actuarial and statistical procedures[69] Employee Engagement and Retention - The annualized employee retention rate for 2024 was 89%, an increase of three percentage points from the previous year[76] - Over 75% of open positions above entry level were filled by promoting from within, including over 2,100 managerial positions in 2024[76] - The company’s engagement and culture survey results placed it in the top 2% of all companies surveyed, indicating high employee engagement[75] - As of December 31, 2024, the company had approximately 66,300 employees[76] - The company has nine Employee Resource Groups (ERGs), with 44% of employees belonging to at least one ERG as of December 31, 2024[80] - The company offers a 401(k) plan with up to a 6% company match as part of its employee benefits[83]

For Immediate ReleasesChicago, IL – March 3, 2025 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include The Goldman Sachs Group, Inc. (GS) , The Progressive Corp. (PGR) , Boston Scientific Corp. (BSX) and Cooper-Standard Holdings Inc. (CPS) .Here are highlights from Monday’s Analyst Blog:Top Stock Reports for Goldma ...

A month has gone by since the last earnings report for Progressive (PGR) . Shares have added about 11.9% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Progressive due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Progressive's Q4 Earnings, Revenues Beat on Higher ...

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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].

Higher mortgage rates. Higher credit rates. Higher insurance rates.Unfortunately for consumers, this high interest-rate environment continues to linger longer than we’d like.The latest sign that elevated rates are here to stay came yesterday in the form of remarks from Richmond Fed President Tom Barkin. Barkin said that he would like to keep interest rates “moderately restrictive” until he gains more confidence that inflation is closer to the Fed’s 2% target.“I prefer to wait and see how this uncertainty pl ...

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]