Progressive (PGR) closed the most recent trading day at $217.65, moving -2.18% from the previous trading session. This change lagged the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 1.57%.
The insurer's shares have seen an increase of 1.15% over the last month, not keeping up with the Finance sector's gain of 2.15% and the S&P 500's gain of 3.68%.
The investment community will be closely monitoring the performance of Progressive in its forthcoming earnings report. It is anticipated that the company will report an EPS of $3.98, marking a 1.73% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $23.29 billion, showing a 4.83% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.74 per share and revenue of $92.26 billion. These totals would mark changes of -2.79% and +6.12%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Progressive. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.13% higher. Right now, Progressive possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Progressive is holding a Forward P/E ratio of 12.54. This represents a premium compared to its industry average Forward P/E of 11.65.
Meanwhile, PGR's PEG ratio is currently 2.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Insurance - Property and Casualty was holding an average PEG ratio of 1.85 at yesterday's closing price.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 Zacks.com.
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The Progressive Corporation (PGR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).