10 Best Insurance Stocks for the Long Term

1. The Progressive Corporation (NYSE:PGR)

Number of Hedge Fund Holders: 95

10-Year Revenue Growth Rate: 14.35%

The Progressive Corporation (NYSE:PGR) ranks first on our list of the best insurance stocks for the long term. The auto insurance company has been functional since 1937 and provides fully customized auto, recreational, property, and life insurance. The company allows customers to bundle their insurance packages to save money. PGR has more than 37 million customers, a reflection of its unique position in the market.

On January 9, Robert Cox, CFA at Goldman Sachs, maintained a buy rating on the stock and set a price target of $290. Similarly, on January 3, analyst firm, JPMorgan raised its price target on the PGR from $251 to $256, maintaining an overweight rating on the stock. The analyst suggested the company is in a position to outperform in 2025, given its defensive risk profile and pricing. The analyst maintains an overall bullish sentiment on the property and casualty sector in 2025.

Over the past 10 years, The Progressive Corporation (NYSE:PGR) has grown its revenue by slightly over 14%, reiterating its sound financial performance and stable growth trajectory over the years. Analysts are also bullish on the stock and their median price target implies an upside of 18% from current levels.

While we acknowledge the potential of PGR to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PGR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.