PGR - Progressive Corp - Company Profile
The Progressive Corporation, through its subsidiaries, provides personal and commercial property-casualty insurance, and other specialty property-casualty insurance and related services primarily in the United States. Its Personal Lines segment writes insurance for personal autos, and recreational and other vehicles. This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, mobile homes, watercraft, and snowmobiles. The company's Commercial Lines segment provides primary liability, physical damage, and other auto-related insurance for autos, vans, and pick-up trucks, and dump trucks used by small businesses; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and non-fleet long-haul operators; dump trucks, log trucks, and garbage trucks used by dirt, sand and gravel, logging, and coal-type businesses; tow trucks and wreckers used in towing services and gas/service station businesses; and non-fleet taxis, black-car services, and airport taxis. Its Property segment provides residential property insurance for homeowners, other property owners, and renters, as well as offers personal umbrella insurance, and primary and excess flood insurance. The company also offers policy issuance and claims adjusting services; home, condominium, renters, and other insurance; and general liability and business owners policies, and workers' compensation insurance, as well as sells personal auto physical damage and auto property damage liability insurance in Australia. In addition, it offers reinsurance services. Company description from FinViz.com
Progressive reported earnings on July 18th of 59 cents that more than doubled the 29 cents from 2016 but still missed estimates by a penny. Revenue rose 14% to $6.7 billion. Shares spiked at the open then went right back to the steady uptrend.
Expected earnings Oct 17th.
Just a couple days before earnings Raymond James upgraded the stock from outperform to strong buy.
Progressive does not generate a lot of headlines. This is a sleeper stock with steady movement and a lack of material volatility. As we approach the Aug/Sep period, which is normally weak, it could be a good idea to own a low volatility position. The options are cheap so the risk is minimal.
They do not have LEAPS so I am going with the February call.
Buy Feb $50 call, currently 95 cents, no initial stop loss.