On Tuesday, the IBD SmartSelect Composite Rating for Progressive (PGR) increased from 94 to 96, indicating that the company is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. As a result, Progressive has climbed above a proper buy zone after clearing the 149.87 entry in a consolidation. However, there are some concerns with the company’s EPS Rating and Accumulation/Distribution Rating that investors should keep an eye on.
The EPS Rating for Progressive is currently at 79, which tracks quarterly and annual earnings-per-share growth. To show that it’s in the top 20% of all stocks, this rating needs to improve to at least 80 or better. Additionally, the Accumulation/Distribution Rating for Progressive is currently at D-, which indicates moderate selling by institutional investors over the last 13 weeks. Investors should look for this rating to improve to at least a C or better before considering purchasing shares.
In Q3, Progressive reported 845% earnings-per-share growth and top line growth came in at 22%, down from 33% in the previous quarter. Despite these strong financial results, Progressive only holds the No. 10 rank among its peers in the Insurance-Property/Casualty/Title industry group. Everest Group (EG), Greenlight Cap Re Cl A (GLRE), and Arch Capital Group (ACGL) are among the top five highly-rated stocks within this group. Therefore, it’s important for investors to keep an eye on these factors before making any investment decisions regarding Progressive stock.