If You Invested $1000 in Progressive a Decade Ago, This is How Much It'd Be Worth Now

For most investors, how much a stock's price changes over time
is important. This factor can impact your investment portfolio as
well as help you compare investment results across sectors and
industries.

Another thing that can drive investing is the fear of missing
out, or FOMO. This particularly applies to tech giants and popular
consumer-facing stocks.

What if you'd invested in Progressive (PGR) ten years ago? It
may not have been easy to hold on to PGR for all that time, but if
you did, how much would your investment be worth today?

Progressive's Business In-Depth

With that in mind, let's take a look at Progressive's main
business drivers.

Based in Mayfield Village, OH, The Progressive Corporation is
one of the major auto insurers in the country. Founded in 1965,
Progressive is a leading independent agency writer of private
passenger auto coverage, and the market share leader for the
motorcycle products since 1998. Progressive operates through three
business segments.

• The Personal Lines (77% of 2023 Net Premium earned) segment
  writes insurance for private passenger automobiles, recreational
  and other vehicles. This business generally offers more than one
  program in a single state, with each program targeted toward a
  specific distribution channel, market, or customer group. Personal
  Lines products comprise insurance for personal autos and special
  lines products. The agency business includes business written by
  Progressive's network of more than 35,000 independent insurance
  agencies located throughout the United States, as well as
  brokerages in New York and California and strategic alliance
  business relationships (other insurance companies, financial
  institutions, and national agencies). The direct business includes
  business written directly by the company online and over the phone.
  
• The Commercial Lines (18%) segment writes primary liability and
  physical damage insurance for automobiles and trucks owned by small
  businesses. The majority of its Commercial Auto customers insure
  two or fewer vehicles. The Commercial Lines business, which is
  primarily distributed through the independent agency channel,
  operates in the business auto and specialty truck markets. The
  business auto market accounts for one third of its total Commercial
  Auto premiums and approximately 60% of the vehicles Progressive
  insures in this business. The remainder is in the specialty truck
  commercial auto market, which includes dump trucks, logging trucks,
  tow trucks, local cartage and other short-haul commercial vehicles.
  
• The Property (5%) segment writes personal property insurance,
  for homeowners, other property owners, and renters, in the Agency
  channel in over 31 states and the District of Columbia for personal
  property insurance and in over four states for commercial property
  insurance.

Bottom Line

Putting together a successful investment portfolio takes a
combination of research, patience, and a little bit of risk. For
Progressive, if you bought shares a decade ago, you're likely
feeling really good about your investment today.

A $1000 investment made in February 2014 would be worth
$7,947.89, or a 694.79% gain, as of February 28, 2024, according to
our calculations. Investors should note that this return excludes
dividends but includes price increases.

The S&P 500 rose 173.86% and the price of gold increased
47.31% over the same time frame in comparison.

Analysts are anticipating more upside for PGR.

Shares of Progressive have outperformed the industry over the
past year. It continues to gain on higher premiums, given its
compelling product portfolio, leadership position and strength in
both Vehicle and Property businesses. Focus on becoming a one-stop
insurance destination, catering to customers opting for a
combination of home and auto insurance, augurs well for the
company's growth. Policies in force and retention ratio should
remain healthy. Competitive pricing to retain current customers and
address customer needs with new offerings should continue to drive
policy life expectancy. However, exposure to catastrophe losses
induces underwriting volatility. Escalating expenses due to higher
losses and settlement expenses remain an overhang on the margin.
High debt level along with low times earned interest pose financial
risk.

The stock has jumped 6.94% over the past four weeks.
Additionally, no earnings estimate has gone lower in the past two
months, compared to 11 higher, for fiscal 2024; the consensus
estimate has moved up as well.

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