Progressive (PGR) has seen its IBD SmartSelect Composite Rating increase from 94 to 96, indicating that it is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. This makes it an attractive option for investors looking for winning stocks.
In the early stages of a new price run, it’s important to look for companies with a score of 95 or higher. Progressive has now climbed above a proper buy zone after clearing the 149.87 entry in a consolidation. While there is still some room for improvement on certain metrics, such as its EPS Rating and Accumulation/Distribution Rating, overall Progressive looks like a strong investment opportunity.
One weak spot is the company’s 79 EPS Rating, which tracks quarterly and annual earnings-per-share growth. Look for this rating to improve to at least 80 in order to show that it’s in the top 20% of all stocks. Its Accumulation/Distribution Rating of D- shows moderate selling by institutional investors over the last 13 weeks, but look for this rating to improve to at least a C or better. In Q3, the company reported an impressive 845% earnings-per-share growth and top line growth came in at 22%, down from 33% in the previous quarter.
Despite these challenges, Progressive holds the No.10 rank among its peers in the Insurance-Property/Casualty/Title industry group and is considered one of the top highly-rated stocks within this group alongside Everest Group (EG), Greenlight Cap Re Cl A (GLRE) and Arch Capital Group (ACGL). Investors should keep an eye on any potential pullbacks or new patterns before making a purchase decision, but overall Progressive seems like a promising investment opportunity with room for growth on several key metrics.