PGR's November Earnings Improve: Should You Buy or Hold the Stock?

Zacks12-17

The Progressive Corporation PGR reported solid November 2024 results, wherein both the top and the bottom lines increased year over year. Net premiums written improved 18%, driven by the strong ...

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Net premiums written improved 18%, driven by the strong ...</p>\n\n<a href=\"https://finance.yahoo.com/news/pgrs-november-earnings-improve-buy-163400320.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>PGR's November Earnings Improve: Should You Buy or Hold the Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPGR's November Earnings Improve: Should You Buy or Hold the Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-17 00:34 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/pgrs-november-earnings-improve-buy-163400320.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The Progressive Corporation PGR reported solid November 2024 results, wherein both the top and the bottom lines increased year over year. Net premiums written improved 18%, driven by the strong ...</p>\n\n<a href=\"https://finance.yahoo.com/news/pgrs-november-earnings-improve-buy-163400320.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PGR","symbol_name":"美国前进保险公司","start_time":0,"source_url":"https://finance.yahoo.com/news/pgrs-november-earnings-improve-buy-163400320.html","article_id":"2492643884","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Sb.HYlZu9yXiuHVJP5CrHw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/24914fc313d586c139cdc39c2921b55a"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492643884","pubTimestamp":1734366840,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"November earnings per share of $1.71 per increased 48% year over year. Operating revenues of $6.9 billion improved 19.8% year over year. Net premiums earned increased 19%.Policies in force were solid in the Personal Auto segment, up 21% year over year to 23.6 million. Special Lines improved 9% to 6.5 million. In the Personal Auto segment, Direct Auto increased 25% year over year to 13.9 million, while Agency Auto increased 17% to 9.7 million. Progressive’s Commercial Auto segment rose 4% year over year to 1.1 million. The Property business had 3.5 million policies in force, up 14%.Total expenses increased 12% year over year to $5.3 billion, attributable to a 3% higher loss and loss adjustment expenses, a 15.8% increase in policy acquisition costs and an 81.1% jump in other underwriting expenses.PGR strategically maintains an investment portfolio skewed toward U.S. Treasuries. Its solid capital position helps it navigate a volatile market and invest in growth oppor","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"PGR":"美国前进保险公司"},"translate_title":"PGR 11月份盈利改善：您应该购买还是持有该股票？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PGR":1},"content_text":"The Progressive Corporation PGR reported solid November 2024 results, wherein both the top and the bottom lines increased year over year. Net premiums written improved 18%, driven by the strong performance of operating businesses.Combined ratio — the percentage of premiums paid out as claims and expenses —  improved 550 basis points (bps) from the prior-year quarter’s level to 85.6.PGR is one of the country’s largest auto insurance groups, the largest seller of motorcycle and boat policies, the market leader in commercial auto insurance and one of the top 15 homeowners carriers based on premiums written. A solid market presence, a convincing portfolio of products and services, and underwriting and operational expertise should help this insurer deliver steady profitability.\nA Sneak Peek Into Monthly Results\nNovember earnings per share of $1.71 per increased 48% year over year. Operating revenues of $6.9 billion improved 19.8% year over year. Net premiums earned increased 19%.Policies in force were solid in the Personal Auto segment, up 21% year over year to 23.6 million. Special Lines improved 9% to 6.5 million. In the Personal Auto segment, Direct Auto increased 25% year over year to 13.9 million, while Agency Auto increased 17% to 9.7 million. Progressive’s Commercial Auto segment rose 4% year over year to 1.1 million. The Property business had 3.5 million policies in force, up 14%.Total expenses increased 12% year over year to $5.3 billion, attributable to a 3% higher loss and loss adjustment expenses, a 15.8% increase in policy acquisition costs and an 81.1% jump in other underwriting expenses.\nInvestment Thesis\nProgressive’s growth strategy includes prioritizing auto bundles, lowering exposure to risky properties and increasing segmentation through the rollout of new products. The insurer’s efforts to increase the share of Progressive auto and home bundled households, investments in mobile applications and the rollout of new products in a higher number of states should fuel growth. A compelling product portfolio, leadership position, healthy policies in force, better pricing and a solid retention ratio should continue to fuel premium growth.Policy life expectancy (PLE), a measure of customer retention, has improved in the last few years across all business lines. PLE should continue to improve as the auto insurer offers consumers a distinctive new auto insurance option along with competitive pricing.Over a decade, PGR’s combined ratio has averaged less than 93%, which compares favorably with the industry average combined ratio of more than 100%. Prudent underwriting coupled with favorable reserve development should help the company maintain the momentum. Also, its reinsurance program shields the balance sheet from the impact of catastrophe events and active weather years. \nPGR strategically maintains an investment portfolio skewed toward U.S. Treasuries. Its solid capital position helps it navigate a volatile market and invest in growth opportunities. Progressive has also been investing in digitalization to improve margins. It has been continually improving its book value and lowering the leverage banking on operational expertise. Though its leverage compares unfavorably with the industry average, the times interest earned outperforms the industry.\nPositive Analyst Sentiment Instills Confidence in PGR Stock\nSix of the 11 analysts covering the stock raised 2024 estimates, while six raised the same in the past 30 days. Thus, estimates for Progressive’s 2024 earnings have declined 0.7%, while the same for 2025 have risen 0.1% over the past 30 days.\nImage Source: Zacks Investment Research\nPGR's Growth Story Remains Impressive\nThe Zacks Consensus Estimate for Progressive’s 2024 earnings is pegged at $13.20 per share, indicating an increase of 116% from the year-ago reported figure on 20.4% higher revenues of $74.4 billion. The consensus estimate for 2025 earnings is pegged at $13.79 per share, indicating a year-over-year increase of 4.5% on 15.9% higher revenues of $86.2 billion. The long-term earnings growth rate is currently pegged at 27.3%, better than the industry average of 11.2%. It has a Growth Score of A.\nProgressive: An Outperformer\nShares of Progressive have surged 20.9% in the last six months, outperforming the industry’s increase of 12.3%, the Finance sector’s rise of 8.8% and the Zacks S&P 500 composite’s increase of 10.8% in the said time frame. The outperformance is backed by a compelling product portfolio, operational expertise and a solid capital position.\nPGR vs Industry, Sector, S&P 500\nImage Source: Zacks Investment Research\nShares of Progressive have also outperformed some other auto insurers like The Allstate Corporation ALL and Travelers Companies TRV, which have rallied 23.6% and 18.3%, respectively, in a year.\nProgressive shares are trading below the 50-day moving average, indicating a bearish trend.\nAverage Target Price for PGR Suggests a Solid Upside\nBased on short-term price targets offered by 17 analysts, the Zacks average price target is $280.18 per share. The average suggests a potential 15.4% upside from Friday’s closing price.\nImage Source: Zacks Investment Research\nPGR's Expensive Valuation\nPGR is currently expensive. It is trading at a P/B multiple of 5.43, higher than the industry average of 1.55. Given its market-leading presence, growth prospects, rising estimates and better return on invested capital, its premium valuation is justified. \nImage Source: Zacks Investment Research\nIt has a Value Score of B.\nProgressive’s Favorable Return on Capital\nReturn on equity (ROE) for the trailing 12 months was 33.1%, comparing favorably with the industry’s 7.6%. This reflects its efficiency in utilizing shareholders’ funds. \nImage Source: Zacks Investment Research\nAlso, return on invested capital (ROIC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame. This reflects PGR’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 24.1%, better than the industry average of 5.8%.\nImage Source: Zacks Investment Research\nWhat Should You Do With PGR Stock?\nProgressive’s leadership position, coupled with a compelling product and service portfolio, continues to enhance customers’ experience, which, in turn, helps it grow policies in force through better retention and the addition of new customers. \nProgressive has an impressive history of paying dividends uninterruptedly since 1971. Its solid growth prospects, decent earnings surprise history and VGM Score of A instill confidence in the stock. Thus, investors who own the stock should retain it in the portfolio.Given the premium valuation, new investors should wait for a favorable entry point for this Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nThe Travelers Companies, Inc. (TRV) : Free Stock Analysis Report\nThe Allstate Corporation (ALL) : Free Stock Analysis Report\nThe Progressive Corporation (PGR) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492643884"}