Why PROGRESSIVE CORP (NYSE:PGR) qualifies as a high growth stock.

Our stock screener has identified PROGRESSIVE CORP (NYSE:PGR) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:PGR.

Insights from Technical Analysis

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to PGR. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• Looking at the yearly performance, PGR did better than 90% of all other stocks. On top of that, PGR also shows a nice and consistent pattern of rising prices.
• PGR is part of the Insurance industry. There are 143 other stocks in this industry. PGR outperforms 80% of them.
• PGR is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so PGR slightly outperforms the market at the moment.
• In the last month PGR has a been trading in the 247.98 - 289.88 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of PGR contains the most current technical analsysis.

How do we evaluate the setup for PGR?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for PGR is 8:

PGR has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 259.51, a Stop Loss order could be placed below this zone.

Looking into the high growth metrics of PGR

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. PGR scores a 6 out of 10:

Explosive Earnings Growth

• The quarterly earnings of PGR have shown a 24.66% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• PGR has achieved 62.89% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• PGR has experienced 59.23% growth in EPS over a 3-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• The quarter-to-quarter (Q2Q) revenue growth of 17.11% of PGR has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and drive revenue growth.
• PGR has achieved significant 1-year revenue growth of 21.36%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
• PGR has seen a 24.9% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• PGR has surpassed EPS estimates 3 times in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.

Profitability & Financial Strength

• PGR has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• The profit margin of PGR has seen steady growth over the past year, signaling improved profitability.
• With positive growth in its free cash flow (FCF) over the past year, PGR showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• The Return on Equity (ROE) of PGR stands at 33.07%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
• PGR exhibits a favorable Debt-to-Equity ratio at 0.27. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.

Market Strength & Institutional Confidence

• With institutional shareholders at 87.34%, PGR demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• PGR has exhibited strong Relative Strength(RS) in recent periods, with a current 90.27 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.