Pregressive Reaches 52-Week High - Analyst Blog
03 Avril 2013 - 12:54PM
Zacks
On Apr 2, 2013, shares of Progressive
Corp. (PGR) hit a 52-week high of $25.68. The company
generated total of 39 cents in earnings in January and February,
with premiums increasing year over year in both the months.
Progressive’s operating earnings and premiums’ growth as well as
debt-to-total capital ratio in the first two months of this year
reflect overall constant improvement. Policies in force also
remained healthy. Progressive remains focused on maintaining a
healthy policy life expectancy, which is a significant measure to
retain customers.
Progressive delivered positive earnings surprise in two quarters of
2012. However, average surprise was a negative 4.85% due to poor
performance in the second quarter. Nevertheless, our proven model
shows that the property & casualty insurer is likely to beat
earnings in the first quarter of 2013 because it has a right
combination of a positive Earnings ESP (Read: Zacks Earnings ESP: A
Better Method) and a Zacks Rank #1 (Strong Buy). ESP or Expected
Surprise Prediction, which represents the difference between the
Most Accurate Estimate and the Zacks Consensus Estimate, is
+4.65%.
Progressive is scheduled to release its first-quarter 2013 earnings
results on Apr 10. The Zacks Consensus Estimate for the first
quarter is currently pegged at 43 cents, representing a
year-over-year increase of 1.3%.
Valuation for Progressive looks stretched. The shares are trading
at a considerable premium to the peer group average both on a
price-to-book basis and on a forward price-to-earnings basis.
Comparatively, return on equity is 29% higher than the peer group
average.
Progressive presently carries a Zacks Rank #1 (Strong Buy).
Property and casualty insurers like AXIS Capital Holdings
Ltd. (AXS), Montpelier Re Holdings Ltd.
(MRH) and Arch Capital Group Ltd. (ACGL), among
others, also carry a Zacks Rank #1 and appear impressive.
ARCH CAP GP LTD (ACGL): Free Stock Analysis Report
AXIS CAP HLDGS (AXS): Free Stock Analysis Report
MONTPELIER RE (MRH): Free Stock Analysis Report
PROGRESSIVE COR (PGR): Free Stock Analysis Report
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