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PGR Stock Analysis — Progressive Corporation

Sector: Financials

AI Verdict

Progressive trades at a discount to peers at 12.7x forward earnings, but with analysts expecting -12.6% EPS growth, you're paying a fair price for a business whose data advantage is being tested by a tougher claims environment.

Competitive Moat

Progressive is a top U.S. auto insurer with a direct-to-consumer model and advanced data-driven pricing algorithms that allow for more accurate risk assessment than many peers. Its scale and proprietary underwriting data create a cost advantage that is hard for smaller rivals to replicate.

Summary

Progressive stands out for its tech-driven underwriting and direct sales model in a crowded insurance market.

Where It Stands

The stock is up against an RSI of 64.7 (just below overbought), has delivered a -10.3% return over the past year, and trades at 12.7x next year's earnings versus a sector median of 14x.

Key Metrics

Analyst Consensus

12 Buy · 18 Hold · 1 Sell (31 analysts)

Bull Case

At 12.7x forward earnings, you're paying less than the sector median for a company with a 10.5% revenue growth rate last year.

Bear Case

With forward EPS expected to shrink by -12.6% and RSI at 64.7, any P/E compression toward the sector median could mean further downside for the $128.2B market cap.

Catalyst to Watch

Watch for quarterly loss ratios and pricing updates — a surprise jump in claims or regulatory pushback on pricing could drive further earnings declines.

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