Earnings, Policy Growth Keep Progressive Gaining

PGR is an insurance company specializing in personal and commercial auto insurance, residential property insurance, other property-casualty lines of insurance, and related services. The company has three primary business segments: Personal Lines, Commercial Lines, and Property. The high demand of auto insurance coupled with high premiums has benefited PGR, as has its long-running ad campaigns that have built consumer awareness.

In its last earnings report, PGR brought in less revenue than expected ($7 billion versus $18.4 billion), however, it far surpassed per-share earnings expectations ($4.01 actual versus $3.56 expected). The company increased its net premiums written by 20% on a year-over-year basis. Similarly, PGR’s total personal lines of insurance grew by 18%, with a quarter of that growth coming from auto insurance policies alone.

It’s no wonder PGR shares are up 16% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Backs Progressive

Institutional volumes reveal plenty. In the last year, PGR has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in PGR shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of financials names are under accumulation right now. But there’s a powerful fundamental story happening with Progressive.

Progressive Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, PGR has had strong sales and earnings growth over the years:

• 3-year sales growth rate (+16.9%)
• 3-year earnings growth rate (+165.2%)

Source: FactSet

Also, sales are estimated to ramp higher this year by +21.4%.

Now it makes sense why the stock has been powering to new heights. PGR has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Progressive has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year, with more potentially on the horizon. The blue bars below show when PGR was a top pick…driving shares higher:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Progressive Price Prediction

The PGR rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in PGR at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.