The Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, business related general liability, and other specialty property-casualty insurance products and related services in the United States. It operates in three segments: Personal Lines, Commercial Lines, and Property. The Personal Lines segment writes insurance for personal autos and recreational vehicles (RV). This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, watercrafts, snowmobiles, and related products. The Commercial Lines segment provides auto-related liability and physical damage insurance, and business-related general liability and property insurance for autos, vans, and pick-up trucks used by small businesses, as well as non-fleet taxis, black-car services, and airport taxis; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and long-haul operators; dump trucks used by light contractors and heavy constructions; log trucks and garbage trucks used by dirt, sand and gravel, logging, garbage/debris removal, and coal-type businesses; and tow trucks and wreckers used in towing services and gas/service station businesses. The Property segment writes residential property insurance for homeowners, other property owners, and renters, as well as offers manufactured homes, personal umbrella insurance, and primary and excess flood insurance. The company offers policy issuance and claims adjusting services; acts as an agent to homeowners, general liability, workers' compensation insurance, and other products; and reinsurance services. It sells its products through independent insurance agencies, as well as through mobile applications and over the phone. The Progressive Corporation was founded in 1937 and is headquartered in Mayfield Village, Ohio.

Progressive has strong profitability and, at the same time, a noticeably more conservative debt load than the typical industry player. A P/E of 11.57 looks moderate and even slightly below the median, which does not call for an aggressive upward revision of the valuation. P/S and P/FCF are also below industry benchmarks, supporting the case for a reasonable valuation based on cash flow and revenue. The main limiting factor is the P/B of 3.89, which is significantly above the median and indicates a premium to book value, meaning the market is already pricing in a high-quality business. At the same time, ROE of 35.44%, ROA of 9.34%, and ROI of 28.75% are at a very high level and have remained stable over the years, which justifies part of that premium. Profit margin remains stable, and operating margin looks strong, although the trend in gross margin and net profit margin does not provide grounds for additional optimism. Revenue, net income, and the company’s equity remain high and are generally growing, confirming the resilience of the model. The balance sheet looks solid: debt/equity is low, and long-term debt relative to capital does not appear excessive. However, liquidity is weak: the quick ratio is zero, and the current ratio is very low, which is not critical for an insurance business but still limits valuation upside. Dividend yield is minimal, so the dividend factor provides almost no support for revaluation. Overall, the fundamentals are rather high-quality and resilient, but they are already partly reflected in the price, so the target valuation adjustment should be moderate rather than aggressive. For an investor, this is a story of strong profitability and capital discipline with limited potential for multiple expansion.

Progressive Corporation (The)

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно упал. Рынок не поддерживает быков.

Weak index, significantly down. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов снизился, но остается значительным.

Medium index, slightly up. The outflow of funds from longs has decreased, but remains significant.

Progressive demonstrates very high profitability and a strong balance sheet, but its premium P/B valuation and weak liquidity limit re-rating potential.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $220.1 million dollar outflow -- that's a 2.4% decrease week over week (from 127,550,000 to 124,450,000). Among the largest underlying components of SSO, in trading today Welltower Inc (Symbol: WELL) is up about 0.9%, Standard and Poors Global Inc (Symbol: SPGI) is up about 2.3%, and Progressive Corp. (Symbol: PGR) is higher by about 2.4%. For a complete list of holdings, visit the SSO Holdings page » The chart below shows the one year price performance of SSO, versus its 200 day moving average:
Looking at the chart above, SSO's low point in its 52 week range is $48.6308 per share, with $72.7999 as the 52 week high point — that compares with a last trade of $69.33. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further SSO Research:

Notable ETF Outflow Detected - SSO, WELL, SPGI, PGR

Key Points
Progressive is the leading auto insurer in the U.S., jumping into first place this year.
It has beat its target goal of a 96% combined ratio for the part decade.
The stock is trading below its 10-year averages for P/E ratio and price-to-book ratio.
Progressive (NYSE: PGR) is one of the largest insurance companies in the U.S., and while insurance companies aren't typically known for being growth stocks, Progressive stock has turned $10,000 into $90,000 over the past 10 years. That's double the S&P 500's return over the same time.
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Progressive stock fell 7% after its third-quarter report on Wednesday, but it has a dominant position in U.S. insurance. Let's take a look at the business and whether or not it can still achieve high growth over the next 10 years.
A major player in U.S. insurance
Progressive has a massive insurance business with auto insurance at the center, but it also offers multiple kinds of policies, including property and casualty. According to the National Association of Insurance Commissioners, it's the second-largest auto insurer in the country, with 18.6% of the market. However, other research points to it moving into first place.
Progressive has flourished over the past 10 years through a largely strong economy that's been beneficial for its business. It has a target combined ratio of 96%, and it has beaten it every year over the past decade. The combined ratio combines the loss ratio, or how much the company pays out as claims, and the expense ratio, which measures how much of revenue goes to expenses.
The lower the better, and under 100% implies that the company is profitable. It came in at 87.4% in 2025, coming after what management called its "most successful year in the history of Progressive" in 2024. It was 88.7% in the third quarter, 0.8 percentage points lower than last year.
Insurance companies rewrite their policies all the time based on algorithms that account for natural disasters, consumer behavior, and all sorts of other factors that are constantly changing. After the beginning of the pandemic, insurance companies had to rewrite policies to catch up to changing dynamics, and with the following inflation, rising costs. That led to the recent outstanding performance.
However, it's not so easy to keep surpassing its high levels, which has led to a recent decline in the stock price.
Is progressive a good value?
Management says that it recently slowed growth to address profitability issues. Having both problems at the same time hasn't been good for its stock, but it could be a buying opportunity. Progressive shares trade at a trailing P/E ratio of under 11 and a price-to-book value ratio of 3.5. Its book value is much higher than it was 10 years ago, while its P/E ratio is lower. Both are lower than their 10-year averages.
The current lower price could present a value for investors. However, its decline may not be over while the issues are still being addressed. At the same time, it sees a huge addressable market in new customers who have longer lifetime values, and its track record as a well-established industry giant can boost investor confidence.
It may not have bottomed out yet after another decline on third-quarter earnings, but you can't time the market, and this could be a good time to buy before it heads back up. It's both a value and a protective stock, which could cushion your portfolio if there's a market correction on the way,
Should you buy stock in Progressive right now?
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Progressive Stock Has Turned $10,000 Into More Than $90,000 in 10 Years

The S&P 500 Index ($SPX) (SPY) closed down by -1.11% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.09%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.02%. December E-mini S&P futures (ESZ26) fell -1.16%, and December E-mini Nasdaq futures (NQZ26) fell -2.10%.
Stock indexes sold off sharply on Wednesday, with the S&P 500 falling to a 1.5-week low and the Nasdaq 100 dropping to a 3.5-week low. Inflation woes dampened market sentiment and sparked stock liquidation on Wednesday after US September consumer prices rose more than expected, reinforcing speculation that the Fed will keep interest rates higher for longer amid sticky price pressures. The chance of a 25 bp Fed rate hike at this month’s FOMC meeting rose to 37% from 22% before the CPI report. Also, the rout in chipmakers continued Wednesday, weighing on the overall market.
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Wednesday’s broader market slump sparked defensive buying of health care and pharmaceutical stocks, limiting losses in the Dow Jones industrials.
US Sep CPI rose +3.7% y/y, stronger than expectations of +3.6% y/y. Sep core CPI rose +2.6% y/y, stronger than expectations of 2.5% y/y.
The Fed Beige Book was hawkish, noting that a majority of the twelve Fed districts in the six weeks through October 5 reported economic growth, and half saw robust or intensifying price pressures.
Stocks and bonds garnered some support Wednesday on comments from Fed Vice Chair Michelle Bowman, who signaled she favors keeping Fed policy steady at this month's FOMC meeting when she said, "We have some time to wait and see how financial conditions and the economy evolve before we decide that we need to take any more action" on interest rates.
US MBA mortgage applications fell -2.7% in the week ended October 9, with the purchase mortgage sub-index down -4.0% and the refinancing mortgage sub-index down -0.4%. The average 30-year fixed-rate mortgage rose +1 bp to a 2.75-year high of 7.50% from 7.49% the prior week.
China's trade news was better than expected, supporting global growth prospects. China's Sep exports rose +36.3% y/y, stronger than expectations of +25.7% y/y and the most in 7 months. Sep imports rose +31.0% y/y, stronger than expectations of +25.0% y/y.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%.
Nov WTI crude oil prices (CLX26) closed up more than +1% on Wednesday as Yemen's Houthi rebels launched multiple drone and missile attacks across Saudi Arabia, including energy infrastructure. Also, Iranian attacks on shipping attempting to transit the Strait of Hormuz have increased in recent weeks, threatening a rebound in energy supplies from the Middle East.
Markets are discounting a 37% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 closed up +0.38%. China's Shanghai Composite closed down -0.89%. Japan's Nikkei-225 Stock Average closed down -0.05%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +4.5 ticks on Wednesday. The 10-year T-note yield fell -2.5 bp to 5.183%. T-note prices recovered from early losses on Wednesday and settled higher as a slump in equity markets fueled short-covering in T-notes. Also, dovish comments on Wednesday from Fed Vice Chair Bowman were bullish for T-notes when said she sees no urgent need for the Fed to raise interest rates.
T-notes initially retreated on Wednesday on the stronger-than-expected US Sep CPI report, which boosted the chance of a Fed rate hike later this month to 37% from 22% before the report. Also, Wednesday’s +1% increase in WTI crude oil has raised inflation expectations and is bearish for T-notes. In addition, the Fed Beige Book was negative for T-notes, noting intensifying price pressures in more than half of the Fed’s districts.
European government bond yields moved lower on Wednesday. The 10-year German bund yield fell -0.3 bp to 3.466%. The 10-year UK gilt yield fell -2.3 bp to 5.424%.
The German Sep wholesale price index rose +8.7% y/y from +6.8% y/y in Aug, the strongest pace of increase in nearly 3.5 years.
Markets are discounting a 12% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks sold off Wednesday, weighing on the overall market. The iShares Semiconductor ETF (SOXX) fell to a 3.5-week low and closed down more than -4%. CoreWeave closed down more than -15% to lead losers in the Nasdaq 100, and Lumentum Holdings (LITE) closed down more than -8%. Also, Marvell Technology (MRVL) closed down more than -7%, and ARM Holdings Plc (ARM) closed down more than -6%. In addition, Advanced Micro Devices (AMD) and SanDisk (SNDK) closed down more than -5%, and Lam Research (LRCX), Seagate Technology Holdings Plc (STX), Microchip Technology (MCHP), Intel (INTC), and Western Digital (WDC) closed down more than -4%.
The Magnificent Seven technology stocks fell on Wednesday, weighing on the broader market. Nvidia (NVDA) and Meta Platforms (META) closed down more than -3%, and Tesla (TSLA) closed down more than -2%. Also, Alphabet (GOOGL), Amazon.com (AMZN), and Microsoft (MSFT) closed down more than -1%. Bucking the trend, Apple (AAPL) closed up +0.50%.
Cybersecurity stocks weakened on Wednesday, weighing on the overall market. Cloudflare (NET) and Okta (OKTA) closed down more than -6%, and Palo Alto Networks (PANW) closed down more than -5%. Also, Crowdstrike Holdings (CRWD) and SentinelOne (S) closed down more than -4%, and Fortinet (FTNT) and Zscaler (ZS) closed down more than -3%.
Cryptocurrency-exposed stocks fell on Wednesday after Bitcoin (^BTCUSD) fell more than -1%. Iren Ltd (IREN) closed down more than -12%, and MARA Holdings (MARA) and Riot Platforms (RIOT) closed down more than -9%. Also, Galaxy Digital Holdings (GLXY) and Robinhood Markets (HOOD) closed down more than -8%, and Circle Internet Group (CRCL), BitMine Immersion Technologies (BMNR), and Strategy (MSTR) closed down more than -5%. On addition, Coinbase Global (COIN) and Bullish (BLSH) closed down more than -4%.
Health insurance stocks moved higher on Wednesday as a defensive play amid the broader market rout. UnitedHealth Group (UNH) closed up more than +4% to lead gainers in the S&P 500 and Dow Jones Industrials. Also, CVS Health Corp (CVS), Cardinal Health (CAH), and United Health Services (UHS) closed up more than +3%, and HCA Healthcare (HCA) and the Cigna Group (CI) closed up more than +2%. In addition, Centene (CNC) and Humana (HUM) closed up more than +1%.
Defensive pharmaceutical stocks rallied on Wednesday amid the broader market slump. Amgen (AMGN), Eli Lilly (LLY), Gilead Sciences (GILD), Merck & Co (MRK), Pfizer (PFE), and Regeneron Pharmaceuticals (REGN) closed up more than +3%, and Vertex Pharmaceuticals (VRTX) closed up more than +2%.
Dell Technologies (DELL) closed down more than -11% to lead losers in the S&P 500 , Hewlett Packard Enterprise (HPE) closed down more than -8%, and NetApp (NTAP) closed down more than -6% after Barclays downgraded the stocks to equal weight from overweight.
Bank of America (BAC) closed down more than -4% after reporting Q3 equities trading revenue ex-DVA of $2.51 billion, weaker than the consensus of $2.63 billion.
State Street (STT) closed down more than -3% after reporting Q3 revenue of $4.00 billion, weaker than the consensus of $4.04 billion.
Progressive (PGR) closed down more than -3% after reporting Q3 net premiums written of $22.30 billion, below the consensus of $22.50 billion.
Liquidia (LQDA) closed up more than +27% after reaching a global settlement resolving all pending litigation with United Therapeutics.
Earnings Reports (10/15/2026)
Alcoa Corp (AA), Bank of New York Mellon Corp/The (BNY), Charles Schwab Corp/The (SCHW), First Horizon Corp (FHN), Interactive Brokers Group Inc (IBKR), JB Hunt Transport Services Inc (JBHT), Marsh & McLennan Cos Inc (MRSH), PNC Financial Services Group Inc (PNC), Prologis Inc (PLD), US Bancorp (USB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Sharply Lower on Inflation Woes and Slumping Chipmakers

In early trading on Wednesday, shares of Honeywell International topped the list of the day's best performing components of the S&P 500 index, trading up 7.5%. Year to date, Honeywell International registers a 42.2% gain.
And the worst performing S&P 500 component thus far on the day is Progressive, trading down 9.1%. Progressive is lower by about 11.0% looking at the year to date performance.
Two other components making moves today are Dell Technologies, trading down 7.4%, and UnitedHealth Group, trading up 3.5% on the day.

S&P 500 Movers: PGR, HONIV

Progressive (PGR) ended the recent trading session at $209.47, demonstrating a +1.93% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.77%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.92%.
The insurer's shares have seen a decrease of 6.01% over the last month, not keeping up with the Finance sector's loss of 3.48% and the S&P 500's gain of 0.96%.
Investors will be eagerly watching for the performance of Progressive in its upcoming earnings disclosure. In that report, analysts expect Progressive to post earnings of $4.26 per share. This would mark year-over-year growth of 5.19%. Our most recent consensus estimate is calling for quarterly revenue of $23.35 billion, up 5.11% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.9 per share and a revenue of $92.41 billion, indicating changes of -1.92% and +6.29%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Progressive. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.9% higher. Right now, Progressive possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Progressive currently has a Forward P/E ratio of 11.48. This valuation marks a premium compared to its industry average Forward P/E of 10.78.
Investors should also note that PGR has a PEG ratio of 2.63 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Insurance - Property and Casualty industry had an average PEG ratio of 1.64 as trading concluded yesterday.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 63, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Progressive (PGR) Increases Despite Market Slip: Here's What You Need to Know

Shares of Berkshire Hathaway Inc. BRK.B closed at $505.48 on Friday, a nearly 6% discount to its 52-week high of $537.74.
BRK.B stock has gained 1.2% year to date compared with the industry’s 0.9% growth, the Finance sector’s 6.3% decrease and the Zacks S&P 500 composite's gain of 17.1% in the same time frame.
Berkshire Hathaway is a conglomerate with more than 90 subsidiaries engaged in diverse business activities. This provides it with stability in various economic cycles.
BRK.B vs Industry, Sector, S&P 500 YTD
BRK.B’s peer, Chubb Limited CB, has gained 5.9% year to date, while another peer, The Progressive Corporation PGR, has lost 8.6% in the same time frame.
BRK.B is Expensive
Shares of Berkshire Hathaway are overvalued compared with its industry. The stock is currently trading at a price-to-book multiple of 1.44, higher than the industry average of 1.41 but below the three-year median of 1.53.
Image Source: Zacks Investment Research
A premium valuation reflects a strong balance sheet, substantial insurance float, diversified earnings and proven capital allocation. Its high-quality businesses and resilience across economic cycles attract a quality premium.
It has a Value Score of D. Berkshire Hathaway is relatively cheap compared with PGR, but expensive compared with CB.
The Case for BRK.B Stock
Berkshire Hathaway is a highly diversified conglomerate with more than 90 businesses spanning insurance, energy, railroads, manufacturing, retail and consumer products. This broad operating footprint limits dependence on any single industry and enhances earnings stability across economic cycles.
Insurance remains Berkshire Hathaway’s largest business, contributing roughly one-fourth of total revenues. Disciplined underwriting, steady premium growth and favorable pricing support segment performance. More importantly, Berkshire Hathaway’s sizable insurance float—premiums collected before claims are paid—provides a low-cost source of capital that can be deployed across investments and acquisitions. This structural advantage strengthens the company’s capital-allocation flexibility and supports long-term value creation.
Berkshire Hathaway is also reshaping its investment portfolio to enhance income stability and geographic diversification. The company has increased its exposure to Japanese trading houses and airline-related businesses while reducing selected payment-company holdings. Its planned $6.8 billion acquisition of Taylor Morrison Home Corp. further expands its exposure to the U.S. housing market and reflects confidence in the sector’s long-term fundamentals.
Financial strength remains a key advantage. With more than $370 billion in cash and U.S. Treasury holdings, conservative leverage and a strong balance sheet, Berkshire Hathaway has substantial capacity to pursue acquisitions, make opportunistic investments and withstand periods of economic volatility.
Additionally, Berkshire Hathaway’s return on equity of 6.6% remains above the industry average, highlighting its relatively efficient use of shareholder capital.
Optimistic Analyst Sentiment
The Zacks Consensus Estimate for 2026 and 2027 revenues indicates a 5.6% and 4.5% year-over-year increase, respectively. The same for 2026 and 2027 earnings implies a 5.1% and 1.9% year-over-year increase, respectively. The expected long-term earnings growth is pegged at 12%, better than the industry average of 7.9%.
Image Source: Zacks Investment Research
The consensus estimate for 2026 and 2027 earnings has moved 3.8% and 2% north, respectively, in the last 60 days.
The same for CB too moved up in the last 60 days.
However, for PGR, 2026 estimates moved north while 2027 estimates moved south in the past 60 days.
Parting Thoughts on BRK.B Shares
Berkshire Hathaway has been a cornerstone of investor portfolios for decades, generating steady shareholder value under Warren Buffett’s nearly 60-year leadership. The spotlight has now shifted to the next chapter, with Greg Abel becoming CEO on Jan. 1, 2026, and Buffett leaving leadership of the behemoth altogether and remaining chairman emeritus.
Stocks like Berkshire Hathaway warrant a premium. Price appreciation, optimistic analysts' sentiments and growth estimates instill confidence in the stock. Investors can add this Zacks Rank #2 (Buy) stock to the portfolio to have a feeling of dynamism by holding a single stock like BRK.B.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).

BRK.B Trading at a Discount to 52-Week High: More Upside Left?

Shares of Arch Capital Group Ltd. ACGL have lost 2.6% in the past three months, underperforming its industry’s appreciation of 0.3%.
The decline was due to investor concerns over softer property pricing, weaker premium growth, reinsurance competition and higher catastrophe exposure, raising concerns about future underwriting margins and earnings growth.
Shares of some other players like The Progressive Corporation PGR and W.R. Berkley Corporation WRB have lost 9.9% and 5.6%, respectively, while NMI Holdings Inc. NMIH has gained 2.3% in the past three months.
3-Month Price Performance: ACGL, WRB, PGR, NMIH & Industry
Image Source: Zacks Investment Research
ACGL's Average Target Price Suggests Upside
Based on short-term price targets offered by 20 analysts, the Zacks average price target is $111.33 per share. The average suggests a potential 17% upside from the last closing price.
ACGL’s Valuation
Based on the trailing 12-month price-to-book ratio, Arch Capital is currently trading at 1.40X, below its industry average of 1.42X. The insurer has a Value Score of B.
Image Source: Zacks Investment Research
Return on Equity of ACGL
Arch Capital’s trailing 12-month return on equity is 17.1%, ahead of the industry average of 7.5%, reflecting how effectively a company is utilizing its shareholders’ equity.
Key Points to Note for ACGL Stock
Arch Capital delivered strong underwriting results across its Insurance, Reinsurance and Mortgage segments, reporting an overall accident-year combined ratio, excluding catastrophes, of 82.5% in the second quarter of 2026. Management remains constructive on casualty insurance and selected casualty reinsurance opportunities, supported by firm North American casualty pricing. Casualty-focused insurance lines, including excess and surplus casualty, construction and national accounts, continued to achieve rate increases, supporting underwriting profitability and growth prospects.
ACGL’s investment income remains a key earnings driver, supported by a growing fixed-income portfolio and higher returns from non-fixed-income assets. As of June 30, 2026, investable assets increased to $49.5 billion from $47.4 billion at 2025-end, while pre-tax net investment income rose to $417 million in the second quarter from $405 million a year earlier. Continued cash generation and reinvestment should support investment income, earnings and book value growth.
Arch Capital is increasingly using third-party capital as part of its broader risk-management strategy. In the second quarter of 2026, reinsurance business generated $410 million of underwriting income, with a 77.5% combined ratio. Profitable underwriting gives Arch Capital greater flexibility to deploy third-party capacity without relying solely on its own balance sheet. As alternative capital expands, Arch Capital's ability to combine its underwriting expertise with third-party capacity could help it manage capital more efficiently while maintaining attractive returns.
Arch Capital continues to strengthen its competitive position through strategic acquisitions and targeted investments. The MidCorp and Entertainment acquisitions expand its U.S. middle-market presence, while investments in local teams support growth opportunities. Its European expansion through Arch Insurance Company (Europe) Limited further enhances diversification and market reach.
Arch Capital’s strong capital generation supports shareholder returns as underwriting opportunities soften. Book value per share rose 2.8% to $68.04, while net cash provided by operating activities increased 17.6% year over year to $1.32 billion in the second quarter of 2026. The company repurchased $1.2 billion of shares in the second quarter, taking the first-half tally to $1.92 billion. Management views buybacks as an accretive use of excess capital at current prices, supporting value creation through the softening cycle.
ACGL Growth Projection
The Zacks Consensus Estimate for Arch Capital’s 2026 earnings per share (EPS) indicates a year-over-year decrease of 4.1%. The consensus estimate for revenues is pegged at $17.70 billion, implying a year-over-year decrease of 5.8%. The Zacks Consensus Estimate for Arch Capital’s 2027 EPS and revenues indicates a year-over-year increase of 3.9% and 0.2%, respectively, from the corresponding 2026 estimates.
ACGL’s earnings grew 30% in the last five years, better than the industry average of 22.7 %.
Muted Analyst Sentiment for ACGL
The Zacks Consensus Estimate for 2026 and 2027 earnings estimates remain unchanged over the past 30 days.
Risks for ACGL
Arch Capital faces a softer property market and rising competition in reinsurance as more companies enter the market. Lower property pricing, client retention, non-renewals and reduced writings led to a 10.4% decline in reinsurance net premiums written and a 6.9% drop in consolidated net premiums written in the second quarter of 2026. Further rate pressure and competition could limit premium growth and reduce returns.
ACGL remains exposed to catastrophe and geopolitical risks. Second-quarter 2026 catastrophe losses of $201 million pushed the combined ratio to 98.5% and reduced underwriting income to $27 million. Further major events could pressure earnings and book value growth.
End Notes
Arch Capital benefits from strong underwriting, higher investment income, growing third-party capital, strategic acquisitions and solid capital. However, softer property pricing, increased competition and catastrophe risks remain headwinds.
Coupled with the cheap valuation, diversified earnings and favorable return on equity, it is wise to retain this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Arch Capital Lags Industry, Trades at a Discount: Time to Hold or Exit?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Avantis U.S. Large Cap Value ETF (Symbol: AVLV) where we have detected an approximate $211.4 million dollar outflow -- that's a 1.0% decrease week over week (from 235,700,000 to 233,400,000). Among the largest underlying components of AVLV, in trading today American Express Co. (Symbol: AXP) is off about 0.2%, Progressive Corp. (Symbol: PGR) is up about 0.5%, and The Charles Schwab Corporation (Symbol: SCHW) is higher by about 0.7%. For a complete list of holdings, visit the AVLV Holdings page » The chart below shows the one year price performance of AVLV, versus its 200 day moving average:
Looking at the chart above, AVLV's low point in its 52 week range is $70.10 per share, with $95.315 as the 52 week high point — that compares with a last trade of $91.97. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further AVLV Research:

Noteworthy ETF Outflows: AVLV, AXP, PGR, SCHW

Progressive (PGR) closed the most recent trading day at $206.97, moving -2.48% from the previous trading session. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, added 0.45%.
Shares of the insurer have depreciated by 5.22% over the course of the past month, underperforming the Finance sector's loss of 1.11%, and the S&P 500's gain of 1.27%.
The investment community will be closely monitoring the performance of Progressive in its forthcoming earnings report. The company's upcoming EPS is projected at $4.21, signifying a 3.95% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.35 billion, up 5.11% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $17.9 per share and a revenue of $92.41 billion, signifying shifts of -1.92% and +6.29%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Progressive. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.07% higher. Progressive is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Progressive is presently being traded at a Forward P/E ratio of 11.86. This signifies a premium in comparison to the average Forward P/E of 11.16 for its industry.
It's also important to note that PGR currently trades at a PEG ratio of 2.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Insurance - Property and Casualty industry had an average PEG ratio of 1.69 as trading concluded yesterday.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).

Progressive (PGR) Stock Moves -2.48%: What You Should Know

For Immediate Release
Chicago, IL – September 22, 2026 – Zacks Equity Research shares NVIDIA Corp. NVDA as the Bull of the Day and Travelzoo TZOO as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Berkshire Hathaway BRK.B, The Progressive Corp. PGR and Chubb Ltd. CB.
Here is a synopsis of all five stocks:
NVIDIA Corp. is back to being a Zacks Rank #1 (Strong Buy).
Are you in?
NVIDIA is the leading AI and accelerated computing company in the world. It is in the exclusive "trillion-dollar" club. NVIDIA has a market cap of $5.4 trillion.
NVIDIA Beat Again in the Fiscal Second Quarter 2027
On Aug 26, 2026, NVIDIA reported its fiscal second quarter 2027 results and beat on the Zacks Consensus by $0.13. Earnings were $2.22 versus the Zacks Consensus Estimate of $2.09.
It was the fifth earnings beat in a row. NVIDIA has only missed on earnings three times in the last five years with two of those in 2022, before the AI Revolution began. That's an impressive record.
Revenue soared another 106% to $96.2 billion, up from $46.7 billion in Q2 of fiscal 2026. Data center revenue jumped 117% to $89 billion.
Gross margins were 75%.
As usual, NVIDIA's CEO, Jensen Huang, was bullish.
"AI has reached its inflection point," said Huang.
"It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue," he added.
Analysts Remain Bullish on NVIDIA in F2027 and F2028
Despite all the doom and gloom about AI being "over" the earnings estimates on NVIDIA don't tell that story.
One estimate is higher in just the last week with thirteen estimates higher in the last thirty days, which is the analysts raising estimates after the earnings report.
The fiscal 2027 Zacks Consensus Estimate has jumped to $9.25 from $8.91, which is earnings growth of 93.9% because NVIDIA only made $4.77 last year.
Twelve estimates are also higher for fiscal 2028 with the Zacks Consensus rising to $15.33. That would be further earnings growth of 65.8%.
I have said many times over the years on the Zacks Market Edge Podcast that we will never see this kind of earnings, and sales, growth from a large cap company, over this many years, ever again.
Shares of NVIDIA are Beating the S&P 500 in 2026
NVIDIA has been a hot stock for the last few years but in 2026, it took a break. But that "break" means it is still up 20.4% year-to-date.
And that's beating the S&P 500.
NVIDIA is attractively priced. No, I'm not calling it "cheap" but valuations are more attractive now than the last few years.
NVIDIA trades with a forward price-to-earnings (P/E) ratio of 24. That's low for NVIDIA historically.
It also has a price-to-sales (P/S) ratio of 17.7. While that is expensive, even for a growth company, it's down from the high of 40 in 2023.
Sales are expected to rise 88% in fiscal 2027 and another 65.5% in fiscal 2028.
NVIDIA is also shareholder friendly. It now pays an annual dividend of $1.00 which is yielding 0.5%. It also has a massive share repurchase authorization, which still has $99 billion left as of the end of the fiscal second quarter of 2027.
For years, many have doubted NVIDIA. But it has the coveted Zacks #1 (Strong Buy) rank again.
For investors who were waiting for NVIDIA to get more attractive on a fundamental basis, now is the time. NVIDIA should be on your short list.
Travelzoo was negatively impacted by international conflicts, such as the Iran War, in the second quarter. Analysts cut their full year earnings estimates on this Zacks Rank #5 (Strong Sell).
Travelzoo is a club for travel enthusiasts. It reaches 30 million travelers. Club Members receive Club Offers negotiated and vetted by the company's deal experts around the globe. It has relationships with thousands of top travel companies which gives them access to irresistible deals.
Travelzoo Missed Big on Earnings in the Second Quarter of 2026
On July 28, 2026, Travelzoo reported its second quarter 2026 results and missed on the Zacks Consensus by $0.36. Earnings were a loss of $0.21 versus the Zacks Consensus of $0.15.
Revenue was down 3% to $23.2 million. Its revenue consists of advertising revenues and commissions derived from and generated in connection with purchases made by Travelzoo members, as well as membership fees.
Travelzoo said international conflicts created uncertainty among advertisers and travelers. All of Travelzoo's business segments were negatively impacted.
Travelzoo also spent more on marketing in the second quarter in order to grow the membership business. The marketing spend averaged $2.3 million per quarter from Q1 2025 to Q1 2026. But in the second quarter of 2026, the company spent $4.7 million.
It costs $50 to get an annual membership as a Club Member. But this revenue isn't captured immediately. Membership fee revenue is recognized ratably over the full one-year subscription period.
But the cost outlay happens immediately.
Travelzoo's membership revenue was $7.7 million in 2025, or 8% of the total revenue. The company estimates it will be $17.2 million in 2026, or 13% of the total revenue. It also estimates by 2027 it will be $30 million, or 30% of total revenue.
Analysts Cut Travelzoo's Earnings Estimates for 2026 and 2027
The costs are going to outweigh the gains for a while. Three estimates were lowered for 2026 over the last 60 days. That pushed the Zacks Consensus down to a loss of $0.14 from $0.58.
That's a decline of 134% as the company made $0.41 last year.
Three estimates were also cut for 2027 in the last 60 days as well. But analysts expect the company to rebound back to positive earnings. The Zacks Consensus is now looking for $0.73 in 2027, down from the prior consensus of $0.96.
That's earnings growth of 616%.
Shares of Travelzoo Fall to a Multi-Year Low
It's been a tough few months for Travelzoo shares as it unveiled its strategy to grow the membership fee business.
They've fallen back to early 2026 lows, which were multi-year lows.
But Travelzoo is cheap. It has a price-to-sales (P/S) ratio of just 0.6. A P/S ratio under 1.0 usually indicates a company is undervalued. An investor is buying $1.00 worth of sales for just $0.60. The sales are on sale.
Travelzoo also has been repurchasing shares. It repurchased $1.9 million worth of shares in the second quarter.
It finished the second quarter of 2026 with a cash balance of $7.6 million.
Investors interested in Travelzoo might want to wait to see if their strategy is going to work, and for the earnings to turn around, before getting in.
Additional content:
Berkshire After Buffett: Can It Continue to Endure (& Compound)?
Berkshire Hathaway is witnessing its biggest leadership transition. Warren Buffett is stepping down as chairman and assuming the role of chairman emeritus, and his son Howard G. Buffett is becoming the chairman. Greg Abel has already succeeded Warren Buffett as CEO on Jan. 1, 2026.
Over nearly six decades, Warren Buffett created extraordinary shareholder value through his exceptional investment judgment and disciplined approach to capital allocation. His departure marks the end of a remarkable era, but it does not undermine the durable enterprise he built. Although the transition could generate near-term uncertainty, Berkshire's decentralized operating model, financial strength and institutionalized investment discipline should support continued long-term value creation.
Abel's extensive operating experience, deep familiarity with Berkshire's businesses and commitment to its distinctive culture provide important continuity. His involvement in operations and capital allocation has also enabled an orderly transition rather than an abrupt handover.
Concerns surrounding Buffett's departure are further mitigated by Berkshire's underlying economic strength. The company owns high-quality businesses across insurance, railroads, utilities, manufacturing and consumer industries. Substantial insurance float and recurring cash flows from BNSF, Berkshire Hathaway Energy and other subsidiaries provide significant capital-allocation flexibility. Moreover, its fortress balance sheet—including more than $370 billion of cash and U.S. Treasury holdings at year-end 2025—offers resilience during downturns and the capacity to pursue major opportunities during periods of market distress.
More than eight and a half months into the CEO transition, Berkshire's post-Buffett investment case rests not on finding another Buffett, but on preserving its culture, allocating capital rationally and compounding intrinsic value through its uniquely durable collection of businesses.
What About Its Peers?
The Progressive Corp., an insurance company, is a leading independent agency writer of private passenger auto coverage and the market share leader for motorcycle products since 1998. The president and chief executive officer of Progressive Corporation is Tricia Griffith, who has led the company since July 2016. Progressive has grown to become the most significant motor insurance carrier in the United States as of late 2022.
Chubb Ltd. boasts being one of the world's largest providers of property and casualty (P&C) insurance and reinsurance and the largest publicly traded P&C insurer based on market capitalization of $131.4 billion. Evan G. Greenberg has been the chairman and chief executive officer of Chubb since 2004.
BRK.B's Price Performance
Shares of BRK.B have gained 1% year to date, underperforming the industry.
BRK.B's Expensive Valuation
BRK.B trades at a price-to-book value ratio of 1.46, above the industry average of 1.43.
Estimate Movement for BRK.B
The Zacks Consensus Estimate for BRK.B's third-quarter and fourth-quarter 2026 EPS has witnessed no movement over the past 30 days. The consensus estimate for full-year 2026 and 2027 EPS has moved 0.8% and 0.4% north, respectively, in the last 30 days.
The consensus estimates for BRK.B's 2026 and 2027 revenues and earnings indicate year-over-year increases.
BRK.B stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Progressive Corporation (The)

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