5 Best Low Risk High Growth Stocks to Buy Now

3. The Progressive Corporation (NYSE:PGR)

Number of Hedge Fund Holders: 64

Insurance company The Progressive Corporation (NYSE:PGR) ranks 3rd in our list of the best low risk high growth stocks to buy now. As of the end of the first quarter of 2023, 64 hedge funds tracked by Insider Monkey were long The Progressive Corporation (NYSE:PGR).

In July, The Progressive Corporation (NYSE:PGR) shares jumped after J.P. Morgan analyst Jimmy Bhullar upgraded the stock to Overweight from Neutral. The ratings upgrade came despite The Progressive Corporation (NYSE:PGR)’s weak numbers recently posted. The analyst said:

“Despite poor margins in the past two years, our long-term outlook for the personal auto market is upbeat, and we consider it a structurally better business than commercial lines or reinsurance.”

The London Company Large Cap Strategy made the following comment about The Progressive Corporation (NYSE:PGR) in its second quarter 2023 investor letter:

“The Progressive Corporation (NYSE:PGR) – PGR underperformed during Q2 due to concerns about additional price hikes needed to maintain its targeted profitability ratio. PGR continues to increase auto policies in force, but recent costs were higher than expected. To combat weaker than expected margins, PGR is reducing advertising spending and increasing prices on insurance. Looking ahead, we believe PGR remains well positioned reflecting its more flexible pricing platform and tech solutions that monitor and price for distracted driving. While near-term costs were higher than expected, PGR has a great track record of profitability and conservative underwriting philosophy.”