Discover why Progressive is beating the market with less risk
- Progressive is one of the least volatile stocks in the S&P 500
- Progressive has a compound annual growth rate of 25%-26%
- Progressive’s beta of 0.67 puts it in the lowest quintile in terms of volatility
- BofA Securities raised its price target for Progressive to $261.00
- Progressive trades at 17.7 times consensus earnings per share, which is in line with its historical range
- Consensus earnings per share forecast for Progressive is 31% lower than BofA’s forecast
Progressive is standing out as one of the least volatile stocks in the S&P 500 while delivering solid returns to shareholders. With a compound annual growth rate of 25%-26%, Progressive is in the top quintile of S&P 500 stocks. Its beta of 0.67 indicates low volatility compared to the market. BofA Securities has raised its price target for Progressive to $261.00, highlighting its potential for further growth. Despite concerns about its valuation, Progressive’s trading multiples are in line with its historical range. Additionally, BofA believes that consensus earnings per share forecasts for Progressive are too low, presenting an opportunity for investors. The stock’s strong performance over the past decade suggests that historical multiples have undervalued the company’s fair value.
Factuality Level: 2
Factuality Justification: The article is heavily focused on promoting Progressive stock and the analysis provided is biased towards a positive outlook on the company. It lacks objectivity and critical analysis, presenting opinions as facts without providing a balanced view. The information provided is repetitive and overly focused on the stock’s performance without considering potential risks or downsides.
Noise Level: 3
Noise Justification: The article provides a detailed analysis of Progressive stock’s performance, volatility, and valuation. It includes insights from a senior insurance analyst and data to support the claims made. However, the article is focused solely on Progressive stock and does not explore broader trends or implications beyond this specific company.
Financial Relevance: Yes
Financial Markets Impacted: Progressive stock
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the stock performance and valuation of Progressive, a home-and-auto insurer. It provides analysis and projections for the company’s future returns and argues that the stock is undervalued. However, there is no mention of any extreme events or events that would impact financial markets or companies.
Public Companies: Progressive (PGR), Nvidia (NVDA), Eli Lily (LLY)
Key People: Josh Shanker (Senior Insurance Analyst with BofA Securities)
Reported publicly:
www.marketwatch.com 
