Stock Price & Analysis

Based on the analysis of Progressive Corp (PGR), the stock presents a strong buy opportunity due to favorable analyst ratings, positive earnings projections, and solid fundamental valuation.

Answer: Buy PGR stock as it has strong buy ratings and favorable growth prospects.

The predicted price for PGR stock in 2025 is $300, driven by strong policies in force growth and improving profitability. Analysts highlight Progressive's robust underwriting environment and margin expansion as key factors.

The S1 support level for PGR Stock is $269.42 ,The R1 resistant level for PGR Stock is $283.96.

As of the end of day on 2025-04-02, the price of PGR Stock was $283.3.

The target price for PGR Stock according to analyst rating is 296.50, with the highest price target at 320.00 and the lowest at 237.00. Analysts have a Strong Buy rating on PGR Stock overall.

The market cap of PGR is $166.7B.

Analysis and Insights

Progressive Corp (PGR) appears to be overvalued based on several key metrics:

1. High Valuation Ratios:

   • PE Ratio: 17.79, significantly higher than the industry average of 11.88.
   • EV/EBITDA: 13.84, above the industry average, indicating a premium valuation.
   • PB Ratio: 5.47, well above the industry average, suggesting the stock is pricey relative to book value.

2. Premium Pricing:

   • The stock trades at a forward P/E of 17.99, reflecting high market expectations for future growth.

3. Strong Financials but Rich Valuation:

   • While PGR has strong ROE (37.3%) and revenue growth (20.07% year-over-year), its valuation metrics suggest investors are paying a premium for these strengths.

4. Analyst Sentiment:

   • The stock has a "Strong Buy" rating from some analysts, but its forward P/E and PEG ratio (1.65) indicate it may be trading at a premium to its growth prospects.

5. Market Sentiment:

   • The fear and greed index shows "extreme fear," which could signal a potential buying opportunity if fundamentals remain strong.

Conclusion

While PGR has strong fundamentals and growth prospects, its current valuation metrics suggest it may be overvalued. Investors should exercise caution and consider whether the stock's premium pricing aligns with their investment objectives.

The Progressive Corporation is an insurance holding company, which has insurance and non-insurance subsidiaries and affiliates. The Company’s segments include Personal Lines, Commercial Lines, Property and Other indemnity. The Personal Lines segment writes insurance for personal autos and recreational vehicles. The segment consists of personal auto and special lines products. Commercial Lines segment writes auto-related liability and physical damage insurance, business-related general liability and property insurance predominately for small businesses, and workers’ compensation insurance primarily for the transportation industry. Property segment writes residential property and renters’ insurance in virtually all states, primarily in the independent agency channel and through select agents under its Platinum program. The regulated programs include several mandatory state pools, such as the Michigan Catastrophic Claims Association, Florida Hurricane Catastrophe Fund and others.

Price Prediction for PGR Stock by 2030

Based on current trends and analyst projections, Progressive Corporation (PGR) is expected to reach a stock price of $320 by 2030. This prediction is supported by the company's strong fundamentals, including consistent revenue growth and a positive outlook from analysts. The stock is currently trading at $273.01, with a consensus price target of $300, indicating a potential upside of 9.24%. Analysts maintain a "Strong Buy" rating, reflecting confidence in the company's ability to maintain its competitive edge in the insurance industry.

PGR has a total of 61400 employees.