The Progressive Corporation (PGR): What Does The Future Look Like?
Analysts covering The Progressive Corporation (NYSE:PGR) are predicting double-digit earnings per share growth of 33.36% over the following three years. With the recent EPS being $2.367, expected growth will push the upcoming EPS to $3.156. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. See our latest analysis for PGR
What can we expect from The Progressive Corporation (NYSE:PGR) in the future?
Analyst expectation from the stock’s 11 analysts is one of positive sentiment, with earnings estimated to expand from current levels of $2.367 to $3.156 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 33.36% over the next few years, which is an optimistic outlook in the near term. In the same period and net income is predicted to slightly grow from $1,374M to $1,832M in the next couple of years, growing by 33.36%. However, margins look rather unappealing at the current levels of revenue and earnings.
Is this similar growth to the past?
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is excessive or whether the company continues to go from strength to strength. PGR’s earnings growth the past couple of years was 25.14% which indicates that the company’s past performance is quite revealing of future outcome. This means PGR has already proven its capacity to grow at a robust rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
Next Steps:
For PGR, there are three pertinent factors you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is PGR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PGR is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of PGR? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
