Why Progressive (PGR) is a Top Growth Stock for the Long-Term

One stock that might be an intriguing choice for investors right now is The Progressive Corporation (PGR Quick QuotePGR - Free Report) . This is because this security in the Insurance - Property and Casualty space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.

Progressive (PGR) Introduction

Based in Mayfield Village, OH, The Progressive Corporation is one of the major auto insurers in the country. Founded in 1965, Progressive is a leading independent agency writer of private passenger auto coverage, and the market share leader for the motorcycle products since 1998. Progressive operates through three business segments.

PGR is a Zacks Rank #1 (Strong Buy) stock, with a Growth Style Score of B and VGM Score of B. Earnings are expected to grow 111.1% year-over-year for the current fiscal year, with sales growth of 19.7%.

Progressive (PGR) Performance

Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.88 to $12.90 per share. PGR also boasts an average earnings surprise of 24.1%.

On a historic basis, Progressive has generated cash flow growth of 6.5%, and is expected to report cash flow expansion of 45.7% this year.

PGR should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.

Often, a rising tide lifts all boats within an industry, as broad trends can drive up securities across the board. This seems to be happening in the Insurance - Property and Casualty sector, which currently holds a Zacks Industry Rank of 21 out of more than 250 industries, indicating strong positioning compared to other segments.

At the same time, Progressive is also performing well on its own. The company has seen positive earnings estimate revisions over the past month, signaling increased analyst optimism about its short- and long-term prospects.

Over the past month, Progressive’s current quarter estimates have increased from $2.84 per share to $3.21 per share, while current year estimates have risen from $12.29 to $12.87 per share. This upward revision has earned the company a Zacks Rank #1 (Strong Buy), highlighting its strong position. You can view the complete list of today’s Zacks #1 Rank stocks here.

For investors seeking a solid pick in a strong industry, Progressive is worth considering. Not only is its industry ranked in the top third, but the company's recent estimate revisions suggest it could be an appealing choice in this promising sector.

What Can We Learn from Progressive’s Price-to-Earnings (P/E) Ratio?
Typically, when making investment decisions, we are advised not to overinterpret the P/E ratio, although it can provide insights into how other market participants view the company.

Analysis of Progressive shows that its P/E ratio remains elevated due to strong future earnings potential. Shareholders appear confident in the company’s future income, which supports the high P/E ratio. In such cases, it is unlikely that the stock price will experience a significant short-term decline.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.