Latest news with #PGR
Yahoo
28-05-2025
- Automotive
- Yahoo
Progressive Moves Above 50 and 200-Day SMAs: How to Play the Stock
Shares of The Progressive Corporation PGR continue to trend up, driven by its robust market presence, diverse range of products and services, and strong underwriting and operational capabilities. PGR is now trending above its 50 and 200-simple moving average (SMA), indicating the possibility of an uptrend ahead. Shares closed at $278.75 yesterday, a 4.9% discount from its 52-week high of $73.53, indicating room for growth. The 50 and 200-day SMAs are key indicators for traders and analysts to identify support and resistance levels. These are considered particularly important as they are the first marker of an uptrend or downtrend. Image Source: Zacks Investment Research Shares of PGR have gained 16.4% year to date, outperforming the industry's rally of 10.3%, the Finance sector's increase of 3.9% and the Zacks S&P 500 composite's decline of 1.8%, respectively, in the said time is one of the country's largest auto insurance groups, the largest seller of motorcycle and boat policies, the market leader in commercial auto insurance and one of the top 15 homeowners carriers based on premiums written. Image Source: Zacks Investment Research Shares of The Allstate Corporation ALL and The Travelers Companies Inc. TRV, two other auto insurers, have gained 7.5% and 14.5%, respectively, in the said time frame. Travelers is a prominent player in the U.S. auto, homeowners, and commercial property-casualty insurance market. Its solid market position and well-executed growth strategies are expected to fuel ongoing expansion across both personal and commercial segments. The company is well-equipped for continued growth, supported by high customer retention, enhanced pricing, rising new business volumes and positive trends in renewal is refining its business approach by focusing on its core competencies and exiting less profitable segments. The company expects growth in total Property-Liability policies in force this year, supported by higher auto insurance renewal rates and steady gains in new business. Strengthened by increasing premiums, a growing protection services division and continued streamlining initiatives, Allstate is well-positioned for long-term growth. PGR is currently expensive. It is trading at a P/B multiple of 5.64, higher than the industry average of 1.54. Image Source: Zacks Investment Research Shares of Allstate and Travelers are also trading at a premium to the industry. Progressive is well-positioned for growth through strategic initiatives that involve emphasizing auto insurance bundles, reducing exposure to high-risk properties, and enhancing segmentation with new product launches.A strong product portfolio and disciplined underwriting have supported a healthy number of policies in force, while a solid retention rate continues to drive premium growth. Policy Life Expectancy (PLE), a key indicator of customer retention, has steadily improved across all business lines in recent years. Innovative auto insurance offerings and competitive pricing are expected to further support PLE alignment with industry trends, PGR has embraced digital transformation, including the integration of artificial intelligence. Over the past decade, the company has maintained an average combined ratio below 93%, outperforming the industry average of over 100%. This reflects prudent underwriting practices and favorable reserve development, both of which contribute to its sustained comprehensive reinsurance program provides significant protection against catastrophic events and adverse weather, helping to safeguard its balance sheet. Strong cash flow allows for continued investment in growth initiatives, particularly in digital technologies aimed at improving efficiency and margins. Additionally, the company has been steadily enhancing its book value and reducing its leverage remains slightly above the industry average, its times interest earned ratio exceeds industry norms, highlighting its solid financial position and operational strength. Four analysts have raised earnings estimates for 2025 and 2026 in the past seven days. The Zacks Consensus Estimate for 2025 and 2026 has moved 1.2% and 0.5% north, respectively, in the same time frame. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Progressive's 2025 earnings is pegged at $16.00 per share, indicating an increase of 13.9% from the year-ago reported figure, while the same for 2026 is pegged at $16.06 per share, indicating a year-over-year increase of 0.4%.The long-term earnings growth rate is pegged at 10.2%, better than the industry average of 6.9%. Its Growth Score is A. Based on short-term price targets offered by 18 analysts, the Zacks average price target is $301.89 per share. The average suggests a potential 8.5% upside from the last closing price. Image Source: Zacks Investment Research Return on equity for the trailing 12 months was 33.5%, comparing favorably with the industry's 7.8%. This reflects its efficiency in utilizing shareholders' funds. Image Source: Zacks Investment Research Also, return on invested capital (ROIC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame. This reflects PGR's efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 18.7%, better than the industry average of 6%. Image Source: Zacks Investment Research Progressive's dominant market position, effective pricing approach, and robust underwriting standards are anticipated to sustain the stock's momentum. Positive growth projections, upbeat analyst sentiment, a solid history of dividend payouts, and a VGM Score of A further boost investor confidence in rising repair costs weigh on auto insurance margins. Given the premium valuation, it is better to adopt a wait-and-see approach for this Zacks Rank #3 (Hold) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report The Allstate Corporation (ALL) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Business Insider
23-05-2025
- Business
- Business Insider
Progressive (PGR) Receives a Buy from Roth MKM
Roth MKM analyst Harry Fong maintained a Buy rating on Progressive (PGR – Research Report) today and set a price target of $315.00. The company's shares closed yesterday at $277.12. Confident Investing Starts Here: Fong covers the Financial sector, focusing on stocks such as Progressive, Allstate, and Assured Guaranty. According to TipRanks, Fong has an average return of 14.5% and a 74.89% success rate on recommended stocks. In addition to Roth MKM, Progressive also received a Buy from Wells Fargo's Elyse Greenspan in a report issued yesterday. However, on May 21, KBW maintained a Hold rating on Progressive (NYSE: PGR). Based on Progressive's latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $20.4 billion and a net profit of $2.57 billion. In comparison, last year the company earned a revenue of $17.24 billion and had a net profit of $2.33 billion Based on the recent corporate insider activity of 107 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PGR in relation to earlier this year. Most recently, in March 2025, Devin C Johnson, a Director at PGR sold 400.00 shares for a total of $110,016.00.
Yahoo
22-05-2025
- Business
- Yahoo
Here's Why Progressive (PGR) Fell More Than Broader Market
Progressive (PGR) 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 Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Progressive Corporation (PGR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
Morgan Stanley Raises The Progressive Corporation (PGR)'s Price Target to $330 from $320, Maintains Overweight Rating
On May 19, Morgan Stanley analyst Bob Huang raised The Progressive Corporation (NYSE:PGR)'s price target to $330 per share, representing a 3.12% increase from the prior target price of $320. The raise reflects the analysts' strong confidence in the company's future performance. The stock has surged 20% year-to-date, comfortably outpacing the broader market index, which has gained a meagre 1% during the period. Investors are buoyed by The Progressive Corporation (NYSE:PGR)'s recent quarterly results, marking a 10% year-over-year increase in profit, driven by robust demand for its auto insurance policies. A team of accountants in a boardroom, discussing strategic moves of an insurance company. The London Company Large Cap Strategy stated the following regarding The Progressive Corporation (NYSE:PGR) in its Q1 2025 investor letter: 'The Progressive Corporation (NYSE:PGR) – PGR outperformed during the quarter, driven by improved margins, faster growth than the industry, and a rise in policies in force. PGR's superior underwriting risk segmentation continues to translate to industry-leading accident frequency outcomes. We remain confident in PGR's ability to execute in all environments, competitive advantages, and capital allocation strategies.' Wall Street analysts are bullish on the stock with a consensus Buy rating. While we acknowledge the potential of PGR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PGR and that has 100x upside potential, check out our report about this . READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Yahoo
19-05-2025
- Business
- Yahoo
Morgan Stanley Raises The Progressive Corporation (PGR)'s Price Target to $330 from $320, Maintains Overweight Rating
On May 19, Morgan Stanley analyst Bob Huang raised The Progressive Corporation (NYSE:PGR)'s price target to $330 per share, representing a 3.12% increase from the prior target price of $320. The raise reflects the analysts' strong confidence in the company's future performance. The stock has surged 20% year-to-date, comfortably outpacing the broader market index, which has gained a meagre 1% during the period. Investors are buoyed by The Progressive Corporation (NYSE:PGR)'s recent quarterly results, marking a 10% year-over-year increase in profit, driven by robust demand for its auto insurance policies. A team of accountants in a boardroom, discussing strategic moves of an insurance company. The London Company Large Cap Strategy stated the following regarding The Progressive Corporation (NYSE:PGR) in its Q1 2025 investor letter: 'The Progressive Corporation (NYSE:PGR) – PGR outperformed during the quarter, driven by improved margins, faster growth than the industry, and a rise in policies in force. PGR's superior underwriting risk segmentation continues to translate to industry-leading accident frequency outcomes. We remain confident in PGR's ability to execute in all environments, competitive advantages, and capital allocation strategies.' Wall Street analysts are bullish on the stock with a consensus Buy rating. While we acknowledge the potential of PGR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PGR and that has 100x upside potential, check out our report about this . READ NEXT: and . Disclosure: None. Sign in to access your portfolio
