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Mayfield Village, Ohio-based The Progressive Corporation (PGR) provides auto, property, business-related general liability, and other casualty insurance products and related services. With a market cap of $152.5 billion, Progressive operates through Personal Lines, Commercial Lines, and Property segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Progressive fits this bill perfectly. Given the company operates as one of the largest motor insurance carriers in the U.S., its valuation above this mark is not surprising. Moreover, it is the market leader in commercial auto insurance, and one of the top 15 homeowner carriers, based on premiums written.
The insurance giant recently touched its all-time high of $270.62 on Nov. 27 and is currently trading 3.4% below that peak. Although the stock has gained over 4.7% in the past three months, it has lagged behind the Financial Select Sector SPDR Fund’s (XLF) surge of 12.2% during the same time frame.
However, over the longer term, PGR stock prices have soared over 64% on a YTD basis and approximately 59.8% in the past 52 weeks, substantially outperforming XLF’s 34.1% gains in 2024 and 40.2% returns over the past year.
To confirm the bullish trend, PGR has consistently traded above its 200-day moving average and mostly above its 50-day moving average with some fluctuations over the past year.
Progressive’s stock prices observed a marginal decline after the release of its Q3 results on Oct. 15. However, the company’s financials remained robust. Its insurance subsidiaries recognized strong growth in both premiums and policies in force which led to a massive 26.7% year-over-year growth in total revenues, reaching $19.7 billion, exceeding Wall Street’s expectations. Moreover, driven by a higher average earned premium per policy in its vehicle businesses, a 5% decrease in personal auto accident frequency and relatively stable severity trends, the company’s net income surged by an enormous 108.1% year-over-year to over $2.3 billion. Moreover, its adjusted EPS of $3.58 surpassed analysts’ estimates by a notable 5.3%.
Furthermore, Progressive has substantially outperformed its peer Chubb Limited’s (CB) 26.8% gains in 2024 and 26.3% returns over the past year.
Among the 21 analysts covering the PGR stock, the consensus rating is a “Moderate Buy.” The mean price target of $280.70 indicates a 7.4% upside potential from current price levels.
