Latest news with #ProgressiveCorporation
RNZ News
24-05-2025
- Business
- RNZ News
NZ-born businessman Glenn Renwick dies in Florida multi-vehicle car accident
Glenn Renwick was the former chief executive and chairman of the US insurance company Progressive Corporation. Photo: Supplied / United States Securities and Exchange Commission Well-regarded Dunedin-born businessman Glenn Renwick has died in a multi-vehicle crash in Florida. Renwick was the former chief executive and chairman of the US insurance company, Progressive Corporation, where he introduced initiatives to modernise the firm. In a statement released a few days ago, Progressive said Renwick had made an "enormous" contribution to the company. "During a highly successful 32-year career at Progressive, half of which he served as CEO, Glenn's integrity, leadership skills, business acumen, and innovative approach dramatically affected the financial and competitive position of the company," the statement said. "Over that 32-year period, Progressive's annual revenues grew from about US$750 million [NZ$1.25 billion] in 1986 when Glenn was hired, to nearly US$27b [NZ$45b] at the time of his retirement. "We extend our deepest condolences to Glenn's family and friends, many of whom continue to carry on his legacy with the company." Renwick was listed by American business magazine Forbes twice as one of the 40 most admired chief executives in the world. Despite moving to the US after graduating from university, he kept ties with New Zealand by supporting the planting of tens of thousands of trees, encouraging the re-establishment of native bird populations and promoting sustainable farming techniques. In an obituary for Renwick published in Ohio, a link was provided for donations so that more trees could be planted in his memory. Renwick died on 16 April, just short of his 70th birthday. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Globe and Mail
21-05-2025
- Business
- Globe and Mail
CINF Lags Industry, Trades at a Premium: How to Play the Stock
Shares of Cincinnati Financial Corporation CINF have gained 4.5% year to date, underperforming the industry 's 11.8% growth and the Finance sector's return of 5.7%. The insurer outperformed the Zacks S&P 500 composite's rise of 0.2% in the same time frame. The stock is trading at a 7.2% discount to its 52-week high of $161.75. It is trading well above the 50-day simple moving average (SMA), indicating a bullish trend. The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as it is the first marker of an uptrend or downtrend. CINF vs. Industry, Sector & S&P 500 Year to Date CINF Shares Are Expensive CINF shares are trading at a premium to the industry. Its price-to-book value of 1.75X is higher than the industry average of 1.57X. The company has a Value Score of C, indicative of expensive valuation. Yet it is cheaper than The Progressive Corporation PGR and The Travelers Companies Inc. TRV, which are also trading at a premium to the industry. Northbound Estimate Revisions Instill Confidence in CINF The Zacks Consensus Estimate for 2025 and 2026 has moved 6.7% and 1.8% north, respectively, in the past 30 days, reflecting analyst optimism on the stock. The Zacks Consensus Estimate for 2025 earnings stands at $5.26, suggesting a decrease of 31% on 12.1% higher revenues of $11.1 billion. The consensus estimate for 2026 earnings stands at $8.12, suggesting an increase of 54.4% on 7.9% higher revenues of $12 billion. The expected long-term earnings growth rate is pegged at 2.8%. Factors Favoring CINF Prudent pricing, an agent-centric model, a higher level of insured exposures and disciplined expansion of Cincinnati Re should benefit premiums, the primary driver of an insurer's top line. CINF boasts above-average industry premium growth. CINF is focused on expanding its commercial lines segment by appointing more agencies, strengthening its local field operations, enhancing internal expertise, and offering a broad product portfolio that supports a larger share of agencies' commercial business. Ongoing initiatives to refine pricing accuracy and reduce loss costs are anticipated to further improve the segment's profitability. Since its inception in 2008, Cincinnati Financial's Excess and Surplus (E&S) line has consistently performed well. It is utilizing technology and data analytics to identify new and emerging risks in businesses that require insurance solutions or additional value-added services. A strong emphasis on superior service is expected to continue driving growth and profitability within this segment. Its agent-focused business model, CINFny, remains dedicated to securing new business by delivering outstanding service and expanding insurance offerings to better serve the clients of its agency partners. Cincinnati Financial's consistent cash flow continues to boost liquidity. Cash flow, in addition to higher bond yields, continues to boost investment income growth. The insurer has increased dividends for 65 years straight, a record that is believed to be matched by only seven other U.S. publicly traded companies. The dividend increases reflected strong operating performance and signaled management's and the board's positive outlook and confidence in outstanding capital, liquidity and financial flexibility. Its dividend yield of 2.4% is better than the industry average of 0.2%, making the stock an attractive pick for yield-seeking investors. CINF's Return on Capital Return on equity in the trailing 12 months was 8.2%, better than the industry average of 6.6%. This highlights the company's efficiency in utilizing shareholders' funds. However, its return on invested capital (ROIC), which reflects efficiency in utilizing funds to generate income, of 2.3% is poor when compared with the industry average of 5.9%. How to Play CINF Stock Cincinnati Financial is poised to grow on its solid agent network, sturdy financial health, and an impressive dividend history. The average target price of $152 reflects a 1.2% upside potential from its last closing price. However, its business is significantly concentrated in the Midwest region, which is prone to catastrophes. As such, its operations have substantial catastrophe loss exposure, which makes its earnings volatile. Given premium valuation, it is better to adopt a wait-and-see approach on this Zack Rank #3 (Hold) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> 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 Cincinnati Financial Corporation (CINF): Free Stock Analysis Report The Progressive Corporation (PGR): Free Stock Analysis Report
Yahoo
20-04-2025
- Business
- Yahoo
Is Progressive Corporation (PGR) the Best Low Volatility Stock to Buy Now?
We recently published a list of . In this article, we are going to take a look at where Progressive Corporation (NYSE:PGR) stands against other best low volatility stocks to buy now. The US stock market experienced a turbulent first quarter of 2025, marked by increased volatility and negative returns across the major indices. Uncertainty surrounding the performance of technology stocks, economic data, and trade tensions caused market volatility. The year began with the revelation of an Artificial Intelligence (AI) software developed in China called DeepSeek. The innovative AI rivalled its US competitors, such as ChatGPT, and was considered revolutionary compared to others, sending shockwaves across the global markets. Reuters reported a global investor sell-off across US indexes, with one of the major tech companies alone losing $593 million in one day. The US government was quick to implement policies aimed at promoting US-listed tech firms, while simultaneously reducing the impact of DeepSeek AI, such as the use of tariffs against trade with Chinese firms. In February of 2025, the US government's first round of Tariffs was aimed directly at China in an effort to curb the impact of DeepSeek on the United States' tech industry. In March, President Trump announced a rate of 54% tariff on Chinese goods, while China retaliated with 34% tariffs on US goods and services. As reported by CNBC, the total tariffs applied on Chinese goods by the United States stand at 145%, as of April 11, 2025, with exemptions on specific sectors such as Technology, Automobiles & Smart Phones. China implemented retaliatory trade tariffs of 125% on American goods and services. Due to this economic landscape, the uncertainty surrounding interest rates added to market volatility. The Federal Reserve announced it would maintain interest rates between 4.25% and 4.50%. Speaking at a dinner at the Economic Club of Chicago, Federal Reserve Chairman Jerome Powell stated: 'For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance.' The US economy is considered to be entering 'continuous stagflation', which is defined as continued inflation with very low growth and high unemployment. The Cboe Volatility Index (aka VIX) is one of the indicators that the Fed monitors as part of the broader tools available to assess market conditions. A VIX of 20 or higher suggests a higher-than-normal level of expected price fluctuations. The VIX is currently at 32.64%. The current market suggests that investors might want to lean toward low-risk stocks to avoid potential financial pitfalls. Low-volatility stocks are currently outpacing the broader market and proving their strength during uncertain times. After two lackluster years, this strategy has emerged as the top-performing investment theme of 2025 among the 13 tracked by Bloomberg Intelligence. Joe Gilbert, portfolio manager at Integrity Asset Management, made the following comment about the low risk stocks: 'Investors are going to have to live with volatility at least for the remainder of this year. The lower volatility names are the place for investors to hide.' In this article, we researched the 20 Companies with the lowest 5-year beta (monthly) between 0.2 and 0.8, using the Yahoo Finance stocks screener. Next, we used Insider Monkey's Q4 2024 proprietary hedge fund holdings database and identified the 10 most popular hedge fund stocks. The stocks are ranked in ascending order of their hedge fund positions. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A team of accountants in a boardroom, discussing strategic moves of an insurance company. 5-Year Monthly Beta: 0.38 No. of Hedge Fund Holders: 100 The Progressive Corporation (NYSE:PGR) is a major US insurance provider, primarily known for personal auto insurance, motorcycles, RVs, and watercraft, as well as homeowners and renters' insurance. Its commercial offerings include auto liability and physical damage for various truck types, general liability and property insurance for small businesses, and workers' compensation for the transportation sector. PGR is one of the best low volatility stocks to monitor. The imposition of US trade tariffs can impact The Progressive Corporation (NYSE:PGR) in multiple ways. The main impact would affect their underwriting costs and potentially influence demand for certain insurance products. This includes higher vehicle repair costs, higher vehicle replacement costs, and higher building material costs. In terms of financials, The Progressive Corporation (NYSE:PGR)'s recent performance indicates continued growth. PGR's results for Q1 2025 revealed a topline of $22.21 billion, rising by 21%. The company has shown strong premium growth, with net premiums written rising by 17% in the first quarter of 2025 and throughout the preceding months. The combined ratio is a key financial metric used in the insurance industry to measure an insurer's underwriting profitability. It represents the percentage of earned premiums used to cover losses and expenses. PGR's Combined ratio improved from 86.1% last year to 86% in the latest quarter. The Progressive Corporation (NYSE:PGR) also reported an 18% increase in total policies in force across personal and commercial lines, reflecting its strong market position as the second-largest personal auto insurer in the U.S. Overall, PGR ranks 8th on our list of best low volatility stocks to buy now. While we acknowledge the potential of PGR, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PGR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
Progressive (NYSE:PGR) Reports Strong Q1 Earnings and Launches New Cargo Plus Endorsement
The Progressive Corporation (NYSE:PGR) recently announced a solid financial performance for the first quarter of 2025, with revenues climbing to $20,409 million and net income rising to $2,567 million. Alongside its financial results, Progressive launched the Cargo Plus endorsement, enhancing coverage for truckers—a step that reflects its strategic growth endeavors. Over the last quarter, the company's stock price increased by 14%, a move that aligns with the broader market trends, which saw gains amidst geopolitical tensions affecting tech stocks. The improved earnings and product initiatives likely contributed to Progressive's relative resilience amid market volatility. Be aware that Progressive is showing 2 warning signs in our investment analysis. AI is about to change healthcare. These 27 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. The recent announcement by The Progressive Corporation regarding its solid Q1 2025 financial performance and the introduction of the Cargo Plus endorsement could enhance their claims handling process and broaden their service offering for truckers. These initiatives might lead to revenue boosts, given the improved client services aligning with Progressive's technology investments in claims processing. The company's efforts in risk segmentation and competitive pricing are aimed at sustaining profitability and potentially improving earnings forecasts. Over the past five years, Progressive's total shareholder return, including dividends, reflected a very large increase of 275.58%. This robust performance underscores its growth relative to the market and industry trends over a shorter one-year span, where it outperformed both the US market return of 5.9% and the insurance industry return of 20.3%. Such longer-term gains indicate strong shareholder value creation beyond recent market movements. In terms of share price context, Progressive's price moved up 14% last quarter, suggesting optimistic investor sentiment aligned with its business enhancements. However, with the current share price at US$260.38, it remains approximately 10.6% below the consensus analyst price target of US$291.35, implying potential market confidence in future improvements. Nevertheless, favorable forecasts assume revenue reaching US$103.7 billion and earnings hitting US$9.9 billion by 2028, emphasizing the need for alignment between actual growth and analyst expectations. Explore Progressive's analyst forecasts in our growth report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:PGR. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
09-04-2025
- Business
- Yahoo
The Progressive Corporation (PGR): A Bull Case Theory
We came across a bullish thesis on The Progressive Corporation (PGR) on Substack by Charly AI. In this article, we will summarize the bulls' thesis on PGR. The Progressive Corporation (PGR)'s share was trading at $260.38 as of April 8th. PGR's trailing and forward P/E were 18.08 and 17.45 respectively according to Yahoo Finance. An auto insurance adjustor discussing details of an accident with a policy holder. The Progressive Corporation (PGR) presents a compelling investment opportunity, underpinned by strong financial performance, technological innovation, and favorable market positioning. Year-to-date, PGR has outperformed the broader market, gaining 7% while the S&P 500 declined by 14%. The company's profitability has seen significant improvement, with profit margins rising from 6.2% to 11% and earnings per share more than doubling from $6.61 to $14.45. A key indicator in the insurance industry, the combined ratio, improved to 88.8%, highlighting Progressive's effective cost control and operational efficiency. Technological advancements, particularly in usage-based insurance programs, have fortified its competitive edge, positioning the company for continued growth in both its personal auto and specialty lines segments. Although operating cash flow trails net income, concerns are alleviated by a stable cash position and minimal share dilution, reflecting disciplined financial management. The company remains undervalued when assessed through a discounted cash flow lens, offering a margin of safety and signaling room for upward revaluation. Technical indicators also point toward a bullish trend, supporting further momentum in the near term. Progressive's continued focus on innovation and its ability to navigate a competitive and regulated environment reinforce confidence in its long-term trajectory. Potential risks, including pricing competition and evolving regulatory requirements, are mitigated by the firm's scale, brand strength, and ongoing strategic initiatives. Altogether, Progressive's solid fundamentals, growth prospects, and undervalued stock price create a favorable risk/reward profile. The Progressive Corporation (PGR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 100 hedge fund portfolios held PGR at the end of the fourth quarter which was 95 in the previous quarter. While we acknowledge the risk and potential of PGR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PGR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
