The Progressive Corporation (NYSE:PGR) is expected to deliver a solid 33.36% in earnings growth per share over the next three years. With the recent EPS being $2.367, expected growth will push the upcoming EPS to $3.156. To assess the reasonability of PGR’s earnings growth per share, we should look at its most recent growth rate delivered. Check out our latest analysis for Progressive
How is Progressive going to perform in the future?PGR is covered by 11 analysts who by consensus are expecting positive earnings, estimated to rise from current levels of $2.367 to $3.156 in a few years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 33.36% over the next few years. 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%. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
Basis for the growthThe past can be a helpful 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 will continue to persist into the future. This means PGR has already proven its capacity to grow at a strong rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
For PGR, I’ve put together three essential aspects 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!