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Ohio-headquartered The Progressive Corporation (PGR) is a leading U.S. auto insurer and has been the market leader in motorcycle insurance since 1998. Valued at a market cap of $147.1 billion, Progressive targets specific markets and customer groups with tailored programs across its segments- Personal and Commercial Lines. The company is expected to announce its fiscal Q3 earnings results on Tuesday, October 15.
Ahead of the event, analysts are expecting PGR to report a profit of $3.34 per share, up 59.8% from $2.09 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the past four quarters. Robust demand for its personal auto insurance policies enabled the company to exceed the consensus EPS estimate by 33.2% in the latest quarter.
For fiscal 2024, analysts expect Progressive to report EPS of $13.02, up 113.1% from $6.11 in fiscal 2023. Further, its EPS is likely to rise 4.2% annually to $13.56 in 2025.
PGR has significantly outperformed the broader markets over the past 52 weeks, with shares up 78.6% during this period versus the S&P 500 Index's ($SPX) 34.2% gain and the Financial Select Sector SPDR Fund’s (XLF) 35.8% gains over the same time frame.
Significant pricing increases in personal auto insurance premiums have driven PGR's market momentum over the past year. Additionally, rising wages and a robust labor market have spurred customers to boost spending on auto insurance, a key area of the company’s business. PGR stock popped 2.4% following the release of its stellar August performance report on Sept. 13.
However, the stock dipped by nearly 2% on Sept. 5 after Barclays PLC (BCS) initiated coverage with a "Hold" rating, citing concerns about a potentially softer personal auto insurance market and increasing pricing competition.
Analysts' consensus rating on Progressive stock is cautiously optimistic overall, with a "Moderate Buy" rating. Among 20 analysts covering the stock, 12 recommend a "Strong Buy," one advises “Moderate Buy,” while the remaining seven suggest a "Hold" rating. This consensus is slightly more bullish than two months ago, with 11 “Strong Buy.”
The average analyst price target for PGR is $271.18, suggesting a potential upside of 8% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
