Why Progressive Stock Is an Incredible Bargain Right Now

Core Viewpoint - Progressive is identified as a compelling investment opportunity due to its strong market position, proven track record, and current stock price being significantly lower than its all-time high, despite recent downturns [2][10][16] Company Overview - Progressive is a leading automotive insurer in the U.S. with a 15% market share, second only to State Farm at 18% [5] - The company has a market capitalization of $127 billion and is currently trading at $217.27 [4] Financial Performance - Progressive's stock has dropped 30% from its all-time high, presenting a potential buying opportunity [2] - The company has maintained a strong underwriting record with a combined ratio averaging 92% over the past 20 years, indicating effective risk management [7][8] - For the first three quarters of the year, Progressive reported an excellent combined ratio of 87.3%, despite a recent increase to 100% in September due to policyholder refunds [11] Market Conditions - The insurance industry is cyclical, experiencing "soft" and "hard" market periods, which affects pricing and competition [12][13] - Current evidence suggests a softer pricing environment, which may impact Progressive's growth in the near term [14] Investment Thesis - Progressive is currently priced at 15 times next year's projected earnings, making it cheaper than it has been in almost two years, suggesting a strong buying opportunity [16] - The company's ability to leverage technology for superior underwriting and risk assessment positions it well for long-term success [6]