Progressive Stock Battles Key Trendline Ahead of Earnings

PGR has struggled to make much progress in 2021

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The Progressive Corporation (NYSE: PGR) steps into the earnings confessional tomorrow, Nov. 2. Ahead of the event, PGR was last seen down 1.5% to trade at $93.43. Here's what you can expect from the insurance company

Progressive stock is currently languishing under its year-to-date breakeven level, and has been doing so since mid August. The shares are a far cry from their May 14 record high of $107.58, but are comfortably off their Feb. 16 annual lows of $84.89. 

Progressive offers a forward dividend of $0.40 and a dividend yield of 0.42%. Fundamentally, Progressive has maintained strong and consistent top- and bottom-line growth. PGR's revenues have increased 74% since fiscal 2017 and are up 9% since fiscal 2020. In addition, the insurance company’s net income grew 256% between fiscal 2017 and fiscal 2020. However, Progressive’s trailing 12-month net income has decreased 29%.

Nonetheless, Progressive stock has strong fundamentals and an attractive valuation, making PGR an intriguing long-term investment at its current price-earnings ratio of 13.79.

Even with earnings looming, PGR options are attractively priced at the moment, per the stock's Schaeffer's Volatility Index (SVI) of 21%, which stands higher than just 12% of all other readings in its annual range. This implies that options players are pricing in relatively low volatility expectations. 

 

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