10 Best Performing Insurance Stocks to Buy Now

2. The Progressive Corporation (NYSE:PGR)

1-Year Returns: 41.28%

No. of Hedge Fund Holders: 100

The Progressive Corporation (NYSE:PGR) is the second-largest auto insurer in the U.S., offering a wide range of specialty property-casualty insurance products.

On February 25, Morgan Stanley analyst Bob Huang increased its price target on PGR shares from $307 to $317, keeping an Overweight rating on the stock. This is the second upgrade on PGR from Huang within the last month. The analyst is bullish on PGR shares, indicating a stronger underwriting environment and improving margins as new policy strain eases. Huang now expects the company to report EPS of $16.60 in 2025, up from previous forecast of $14.81. Here is what the analyst at Morgan Stanley said:

“Post January results and 4Q24 industry earnings, Progressive stood out above the rest in terms of growth and profitability. We now see a much more durable underwriting environment that supports a higher EPS growth trajectory.”

The Progressive Corporation (NYSE:PGR) added a record 4.2 million new personal auto policies in 2024. As these policies mature, Huang expects them to positively impact profitability in 2025.