Progressive (pgr) Sees A More Significant Dip Than Broader Market: Some Facts To Know

In the latest trading session, Progressive (PGR) closed at $267.67, marking a -0.72% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.43%. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 0.47%.

The the stock of insurer has risen by 12.73% in the past month, leading the Finance sector's gain of 3.13% and the S&P 500's gain of 2.6%.

The investment community will be paying close attention to the earnings performance of Progressive in its upcoming release. The company is predicted to post an EPS of $3.69, indicating a 1.07% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $20.48 billion, indicating a 19.86% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $14.51 per share and a revenue of $87.39 billion, demonstrating changes of +3.27% and +16.36%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Progressive. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.39% upward. Currently, Progressive is carrying a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Progressive has a Forward P/E ratio of 18.59 right now. This denotes a premium relative to the industry's average Forward P/E of 10.99.

Meanwhile, PGR's PEG ratio is currently 0.68. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Insurance - Property and Casualty industry was having an average PEG ratio of 2.1.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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