PROGRESSIVE CORP (NYSE:PGR) – A Strong Growth Momentum Pick with Solid Technical Setup

PROGRESSIVE CORP (NYSE:PGR) stands out as a high-growth momentum candidate with a favorable technical setup, making it a noteworthy stock for investors seeking both earnings momentum and price strength. The company’s strong fundamentals, combined with a bullish chart pattern, suggest potential for further upside.

Growth Momentum Highlights

• Earnings Growth: PGR has delivered impressive earnings growth, with EPS up 62.9% over the past year. The most recent quarter saw EPS growth of 24.7%, while the previous quarter posted a 37.4% increase.
• Sales Growth: Revenue growth remains strong, with a 20.7% increase over the past 12 months. Quarterly sales growth was 17.1% in the latest report.
• Profit Margins Expanding: The company’s profit margin improved to 12.6% in the latest quarter, up from 8.0% a year ago, indicating better cost management and pricing power.
• Analyst Upgrades: EPS estimates for the next year have been revised upward by 8.9% over the past three months, reflecting improving sentiment.
• Free Cash Flow Growth: Free cash flow per share surged 140.8% year-over-year, reinforcing financial strength.

Technical Strength & Setup

PGR’s technical rating of 8 reflects a healthy uptrend, supported by:

• Strong Relative Performance: The stock outperforms 83% of the market over the past year and ranks in the top 24% of its insurance industry peers.
• Consolidation Breakout Potential: The setup rating of 8 suggests a favorable entry point, with recent price action consolidating between $273.42 and $289.96. A breakout above resistance near $286.04 could signal further upside.
• Support Levels: Multiple support zones exist below, including a key area around $275.90, providing a logical stop-loss level.
• Pocket Pivot Signal: A recent pocket pivot—a bullish volume-driven pattern—adds further confirmation of institutional interest.

For a deeper technical breakdown, review the full technical report for PGR.

Our High Growth Momentum Breakout Setups Screen lists more stocks with similar growth and technical characteristics.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.