BofA’s Top 10 Growth Stocks with The Fastest Projected EPS Growth Rates

5. The Progressive Corporation (NYSE:PGR)

Number of Hedge Fund Holders In Q2 2024: 89

Projected EPS Growth Rate: 49.2%

The Progressive Corporation (NYSE:PGR) is a home and auto insurance products provider. Its shares are up 55.5% year to date, and the stock’s success depends on the firm’s ability to manage expenses, grow premiums, and earn investment income. With interest rates set to lower over the next year, The Progressive Corporation (NYSE:PGR)’s investment income is expected to take a hit. Consequently, the narrative is focused on the firm’s ability to control its costs especially since premium increases in insurance over the past couple of years have constrained the industry’s ability for further hikes. The Progressive Corporation (NYSE:PGR) is also spending heavily on marketing in order to grow the top line by expanding market share. For the short term, this can stress its expense ratio.

Middle Coast Investing mentioned The Progressive Corporation (NYSE:PGR) in its Q3 2024 investor letter. Here is what the fund said:

“Progressive Insurance (NYSE:PGR) is the best example of both a macro and micro transition. Used car repair cost inflation (macro) hurt its profitability. It was early in raising prices to deal with that, and has been growing new policies in force much faster than competitors. As it has overcome the cost inflation issue, its profits have soared, and should continue to grow. The stock price has doubled in the last 14 months.”