Progressive Corp (NYSE:PGR): A High Growth Momentum Stock with Strong Technical Setup

High growth momentum investing focuses on stocks exhibiting strong earnings and revenue acceleration, positive surprises, and upward analyst revisions. These stocks often outperform the market due to their ability to sustain rapid growth. Progressive Corp (NYSE:PGR) stands out as a candidate meeting these criteria while also presenting a solid technical setup.

Why Progressive Corp Fits High Growth Momentum Criteria

Progressive Corp has demonstrated robust financial performance, making it a strong candidate for high growth momentum investors. Key highlights include:

• Earnings Growth: The company reported a 62.9% year-over-year EPS growth (TTM), with quarterly growth accelerating in recent periods. The most recent quarter saw a 24.7% increase compared to the same quarter last year.
• Revenue Growth: Revenue expanded by 20.7% over the past year, with consistent quarterly growth, including a 17.1% increase in the latest quarter.
• Positive Surprises: Progressive Corp has beaten EPS estimates in three of the last four quarters, with an average surprise of 13.7%.
• Analyst Upgrades: EPS estimates for the next year have been revised upward by 9.9% over the past three months, reflecting improving confidence in future performance.
• Free Cash Flow Growth: Free cash flow per share surged 42.8% year-over-year, indicating strong operational efficiency.

These factors contribute to Progressive Corp’s High Growth Momentum Rating of 6, signaling solid earnings and revenue momentum.

Technical Setup and Breakout Potential

From a technical perspective, Progressive Corp holds a Technical Rating of 8, indicating a strong uptrend. The stock has outperformed 91% of the market over the past year and remains in the upper range of its 52-week high.

Key technical observations:

• Support Levels: Multiple support zones exist between $235.60 and $274.33, providing downside protection.
• Resistance Levels: The stock faces resistance near $283.70-$285.08, with a breakout above this level potentially signaling further upside.
• Setup Rating of 6: While the technical health is strong, the setup quality is moderate, suggesting investors may want to wait for a tighter consolidation before entering.

For a deeper analysis, review the full technical report.

Conclusion

Progressive Corp combines strong earnings momentum with a favorable technical structure, making it a candidate for high growth investors. While the setup is not yet ideal for an immediate breakout, the stock’s underlying strength suggests potential for further gains.

For more high growth momentum stocks with strong technical setups, explore the screener results.