The Zacks Mortgage & Related Services industry is gaining momentum with declining mortgage rates. The Federal Reserve lowered interest rates three times in 2025 and a more easing expected this year. This will indirectly put more downward pressure on mortgage rates, thus leading to improving trends in purchase originations and refinancing volumes.With rising competition, mortgage servicers are likely to be under pressure as they are required to resort to price-cutting, leading to a reduction in sales margin. ...

(Bloomberg) -- For the first time since September 2018, investors consider Citigroup Inc. to be worth at least the sum of its parts.In a boost for Chief Executive Officer Jane Fraser as she pushes her turnaround plan, the bank’s market value relative to the value of its assets, known as price-to-book ratio, equalized Friday in a sign that the bank is making a comeback from its laggard status on Wall Street.The ratio is a valuation metric that bank investors pay close attention to. Since regulators focus hea ...

Core Viewpoint - Long-term investors may find an opportunity in the share price weakness of Progressive, particularly as the stock has underperformed compared to the overall S&P 500 index and the insurance sector [1][10]. Company Overview - Progressive operates in the property and casualty (P&C) insurance segment, providing coverage for vehicles and homes, and has a strong brand presence [3]. - The company has historically excelled in underwriting, effectively pricing policies for the risks it assumes [3]. Underwriting Performance - Progressive's combined ratio, a measure of underwriting profitability, was 83.4 in 2023 and 84.1 in 2024, indicating profitability as values below 100 signify profit [4]. - The company's underwriting profitability is significantly better than the overall P&C insurance industry, which had a combined ratio ranging from 97.3 to 103.9 from 2014 to 2023 [5]. Policy Growth - In 2024, Progressive's written premiums increased to approximately $6 billion, reflecting a 22% rise from the previous year [7]. Recent Concerns - Despite the growth in net premiums written, which rose 9% to $6.8 billion, the combined ratio increased to 100.4 in the third quarter, raising concerns among investors [8]. - The increase in the combined ratio was influenced by a Florida law requiring insurers to return excess profits, leading to a $950 million policyholder credit expense [9]. Stock Performance and Valuation - Progressive's share price has decreased by 9.3% this year, underperforming the S&P 500 and the insurance sector, particularly in the second half of the year [10]. - The current price-to-book (P/B) ratio is 3.6, down from over 6 earlier this year, although it remains higher than the S&P 500 Financials' P/B of 2.4 as of October 31 [12]. - The price weakness may present a buying opportunity for long-term investors, given Progressive's strong operational management in the P&C insurance space [13].