10 Best Stocks to Buy Now For the Long Term

8. The Progressive Corporation (NYSE:PGR)

10-Year Sales Growth: 14.54%

Number of Hedge Fund Holders: 100

The Progressive Corporation (NYSE:PGR) is an insurance holding company that operates through various subsidiaries and affiliates, offering a range of insurance products. It operates through three main segments including Personal Lines, Commercial Lines, and Property.

On March 19, William Blair analyst Adam Klauber maintained a Buy rating on the stock. Klauber highlighted that The Progressive Corporation’s (NYSE:PGR) February results suggest it is on track to achieve an EPS of more than $16 in 2025, exceeding the market consensus of $15.6. The company reported a robust monthly EPS of $1.73, supported by significant growth in personal auto policies in force, which rose by 22% in February. In addition to the growth in auto PIF, the company also improved its auto loss ratio to 63%, marking its best monthly result since 2020. Moreover, the combined ratio for February was 83%, reflecting a notable improvement from the prior year.

Klauber believes that The Progressive Corporation’s (NYSE:PGR) $16.07 EPS estimate for 2025, based on a combined ratio of 89% is achievable and potentially conservative. It is one of the best stocks to buy now for long term.

Artisan Mid Cap Value Fund stated the following regarding The Progressive Corporation (NYSE:PGR) in its Q4 2024 investor letter:

” On the positive side, our financials holdings delivered strong absolute and relative returns in 2024, and each of our biggest contributors—First Citizens, M&T Bank and Progressive—was in the financials sector. We exited The Progressive Corporation (NYSE:PGR), one of the largest personal auto insurers in the US, this quarter after a long holding period that began in 2007. As a long-time holding, Progressive is an example of how we put our process into motion. We were able to purchase it at an attractive price, but most of our holding period return came from the value created by the business itself. We recognized the strength of its business model demonstrated by consistent free cash flow generation and above average returns on equity and had a high regard for management, which had a proven track record of pricing discipline through the cycle and prudent capital allocation. Due to its success, Progressive’s market capitalization now exceeds the upper limit of our mid-cap investment universe.”