Progressive stock receives an Outperform rating and is seen as the industry’s top performer for 2025 by Investing.com

On Thursday, shares of Progressive Corp. (NYSE:) Boosted by Raymond James. The investment bank upgraded the insurance company’s stock from Market Perform to Outperform and set a price target of $305.00. The upgrade is based on a positive outlook for the company’s growth prospects and value creation ability.

According to InvestingPro data, Progressive has shown impressive performance over the last twelve months with a return of 55.54%. In addition, twelve analysts recently revised their profit forecasts upwards.

Progressive is known for its long track record of growth. Raymond James analysts therefore see the company as a core position for investors focused on large-cap growth stocks. The investment bank expects Progressive to be managed in terms of policy-in-force (PIF) growth and to achieve better-than-target combined ratios in the near future. This assessment is in line with the company’s strong recent performance, reflected in 22.67% revenue growth over the last twelve months.

Raymond James analysts forecast that Progressive will achieve double-digit growth in both net premiums written (NPW) and net investment income (NII) by 2026. This is despite an expected slight breach in underlying combined ratios. According to their forecasts, in 2025 and 2026 the Return on Beginning Equity (ROBE) rankings will lead for large insurance companies.

This ranking evaluated all listed insurance companies based on their financial performance. InvestingPro subscribers have access to detailed financial health metrics and 12 additional ProTips that provide deeper insight into Progressive’s performance potential.

Raymond James’ optimism is also supported by the valuation of Progressive shares. It currently trades at a discount of approximately 21% to the S&P 500’s 12-month price-to-earnings (P/E) ratio. This is notable because Progressive’s average discount over the past five years has been about 6%. Analysts highlight that this represents an attractive entry point for investors and reflects a significant discount compared to the broader market.

The upgrade by Raymond James is expected to draw investor attention to Progressive stock as market participants assess the company’s potential for sustained growth and profitability in the competitive insurance industry.

In other recent news, Progressive Corp. strong growth in November. Net written premiums rose 18% to $5.56 billion. Net premiums earned rose to $6.04 billion, up 19% year-over-year. The company’s net income rose 48% to $1.01 billion, while earnings per share (EPS) grew from $1.15 to $1.71. Progressive’s combined ratio, a key measure of profitability, improved from 91.1% to 85.6%.

Additionally, BMO Capital maintained its “Outperform” rating on Progressive but slightly lowered its price target to $267 from $273. The adjustment followed a rebound in Progressive’s performance driven by better core loss ratios and reduced estimated losses from Hurricanes Helene and Milton. The company’s EPS estimates for 2024, 2025 and 2026 show a mixed picture, with 2024 estimates increasing by 10% and 2026 estimates decreasing by 2%.

In other corporate news, insurance companies GEICO and Travelers were hit with penalties totaling $11.3 million for inadequate cybersecurity measures.

This translation was created using artificial intelligence. For further information, please see our Terms of Use.