Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Progressive (PGR) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [4] - Progressive's historical EPS growth rate is 7.5%, but projected EPS growth for this year is 4.5%, surpassing the industry average of 4.2% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for assessing a growth stock's efficiency [6] - Progressive's S/TA ratio is 0.75, indicating it generates $0.75 in sales for every dollar in assets, significantly higher than the industry average of 0.35 [6] Group 4: Sales Growth - Sales growth is another key indicator, with Progressive expected to achieve a 16.6% sales growth this year, compared to the industry average of 7.3% [7] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [8] - The current-year earnings estimates for Progressive have increased by 4.6% over the past month, indicating positive momentum [8] Group 6: Overall Assessment - Progressive has earned a Growth Score of A and a Zacks Rank 2 due to positive earnings estimate revisions, suggesting it is a solid choice for growth investors [10]

Core Insights - The Progressive Corporation (PGR) reported strong financial results for January 2025, with net premiums written increasing by 18% year over year and an improvement in the combined ratio by 320 basis points to 84.1 [1][3]. Financial Performance - Earnings per share for January 2025 reached $1.90, reflecting a 61% year-over-year increase [3]. - Operating revenues rose by 22.8% year over year to $6.9 billion [3]. Policy Growth - Policies in force in the Personal Lines segment increased by 18% to 33.8 million [4]. - Direct Auto policies grew by 25% to 14.2 million, while Agency Auto policies increased by 18% to 9.9 million [4]. - The Commercial Auto segment rose by 5% to 1.1 million policies, and the Property business had 3.5 million policies in force, up 13% [4]. Market Position and Strategy - PGR is a leading auto insurance group with a strong market presence and a diverse product portfolio [2]. - The company is focusing on auto bundles, reducing exposure to risky properties, and enhancing segmentation through new product rollouts [6]. Underwriting and Financial Health - PGR's combined ratio has averaged less than 93% over the past decade, significantly better than the industry average of over 100% [7]. - The company maintains a solid cash flow, allowing for continuous investment in digitalization and operational improvements [8]. Analyst Sentiment and Growth Projections - Recent analyst estimates for 2025 earnings have increased by 1.7%, with a consensus estimate of $14.68 per share, indicating a 4.5% year-over-year growth [9][10]. - The long-term earnings growth rate is projected at 10.7%, surpassing the industry average of 7.6% [11]. Stock Performance - PGR shares have gained 11.8% year to date, outperforming the industry and broader market indices [12]. - The average price target for PGR suggests a potential upside of 5.7% from recent closing prices [17]. Valuation Metrics - PGR is currently trading at a price-to-book (P/B) multiple of 6.13, significantly higher than the industry average of 1.64, which is justified by its market leadership and growth prospects [19]. - Return on equity for the trailing 12 months was 33.8%, compared to the industry's 7.6%, indicating efficient use of shareholder funds [22].

Company Performance - Progressive's stock has increased by 12.7% over the past month and reached a new 52-week high of $270.79 [1] - Year-to-date, the stock has gained 12.5%, outperforming the Zacks Finance sector's 6.4% and the Zacks Insurance - Property and Casualty industry's 5.5% [1] Earnings and Revenue Expectations - For the current fiscal year, Progressive is projected to report earnings of $14.51 per share on revenues of $87.39 billion, reflecting a 3.27% increase in EPS and a 16.36% increase in revenues [3] - For the next fiscal year, earnings are expected to rise to $15.38 per share on $96.38 billion in revenues, indicating year-over-year changes of 6.05% and 10.28%, respectively [3] Valuation Metrics - Progressive has a Value Score of B, a Growth Score of A, and a Momentum Score of D, resulting in a combined VGM Score of A [6] - The stock trades at 18.6 times the current fiscal year EPS estimates, which is a premium compared to the peer industry average of 11 times [7] - On a trailing cash flow basis, the stock trades at 39.8 times versus the peer group's average of 11.5 times, with a PEG ratio of 0.68 [7] Zacks Rank - Progressive holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, indicating potential for further stock price appreciation [8] Industry Comparison - The Insurance - Property and Casualty industry is performing well, ranking in the top 26% of all industries, providing favorable conditions for both Progressive and its peer, Palomar Holdings, Inc. [11]

MAYFIELD VILLAGE, OHIO, Feb. 19, 2025 (GLOBE NEWSWIRE) -- The Progressive Corporation (NYSE:PGR) today reported the following results for the month ended January 31, 2025:  January(millions, except per share amounts and ratios; unaudited) 2025  2024 ChangeNet premiums written$6,481 $5,496 18 %Net premiums earned$6,586 $5,386 22 %Net income$1,117 $701 59 %Per share available to common shareholders$1.90 $1.18 61 %Total pretax net realized gains (losses) on securities$109 $17 NM  Combined ratio 84.1  87.3 (3.2 ...

Investors interested in Insurance - Property and Casualty stocks are likely familiar with Progressive (PGR) and Kinsale Capital Group, Inc. (KNSL) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong ...

Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either Progressive (PGR) or Kinsale Capital Group, Inc. (KNSL) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The prov ...

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For Immediate ReleaseChicago, IL – February 7, 2025 – Today, Zacks Equity Research Equity are The Progressive Corp. (PGR) , Chubb Ltd. (CB) , The Travelers Companies (TRV) , The Allstate Corp. (ALL) and Arch Capital Group (ACGL) .Industry: P&C InsuranceLink: https://www.zacks.com/commentary/2411409/5-pc-insurers-to-watch-amid-soft-pricing-low-interest-rateThe Zacks Property and Casualty Insurance (P&C) industry is likely to benefit from better pricing, prudent underwriting and exposure growth. Industry play ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.It also includes access to the Zacks Style Scores. What are the Zacks Style Scores? Developed alo ...

Mr. Mavroudis is a professional portfolio manager specializing in institutional and private portfolios. He focuses on risk management, which is accompanied by in-depth financial market analysis (fundamental, macro and technical) to control the risk undertaken by the portfolios. He invests in all financial instruments globally (stocks, bonds, fx, commodities), restructuring investment portfolios based on prevailing conditions and the needs of each client-investor. Mr. Mavroudis has successfully navigated all ...