Why Progressive (PGR) is a Top Growth Stock for the Long-Term

According to Zacks, Progressive (PGR) has a Zacks Rank of #3 (Hold) but is a compelling pick for growth investors, supported by a Growth Style Score of A and a VGM Score of A. The company's earnings are projected to grow 13.9% this fiscal year, and the consensus estimate for fiscal year 2025 has risen by $0.66 to $16 per share following upward revisions from nine analysts in the last two months; PGR also has an average earnings surprise of 14%.

Analysis

Progressive Corporation (PGR) is currently rated a Zacks Rank #3 (Hold), yet exhibits compelling growth attributes highlighted by an 'A' in both its Growth Style Score and overall VGM Score. According to Zacks' methodology, which emphasizes earnings estimate revisions, PGR's strong Style Scores suggest potential upside despite the neutral rank, particularly as Zacks advises that #3 rank stocks with A or B scores can still offer upside potential. The company is forecast to achieve 13.9% year-over-year earnings growth in the current fiscal year. Reinforcing this positive outlook, nine analysts have revised their fiscal 2025 earnings estimates upwards in the last 60 days, pushing the Zacks Consensus Estimate up by $0.66 to $16 per share. Additionally, PGR has a track record of delivering an average earnings surprise of 14%, indicating consistent outperformance against market expectations. While the #3 Rank typically implies holding a position, the superior 'A' ratings for Growth and VGM, coupled with positive earnings revisions and significant projected growth, position PGR as a noteworthy stock for investors to monitor closely, especially those focused on growth trajectories.

Key Decisions for Investors

• Despite Progressive's Zacks Rank #3 (Hold), investors with a growth-oriented strategy should consider its 'A' rated Growth and VGM scores, its 13.9% projected current fiscal year earnings growth, and the positive fiscal 2025 estimate revisions.
• It is advisable to monitor upcoming earnings reports and any changes to analyst estimates or the Zacks Rank, as an upgrade in the latter could provide a stronger buy signal when combined with its existing favorable Style Scores.
• The consistent 14% average earnings surprise and the recent upward trend in earnings estimate revisions for fiscal 2025 suggest a potential for continued fundamental strength and should be factored into investment considerations.