Progressive (PGR) Is Today's Water-Logged And Getting Wetter Stock
Trade-Ideas LLC identified
(
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Progressive as such a stock due to the following factors:
- PGR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $92.7 million.
- PGR has traded 3.3 million shares today.
- PGR traded in a range 217.7% of the normal price range with a price range of $0.95.
- PGR traded below its daily resistance level (quality: 19 days, meaning that the stock is crossing a resistance level set by the last 19 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on PGR:
The Progressive Corporation, an insurance holding company, provides personal and commercial property-casualty insurance, and other specialty property-casualty insurance and related services primarily in the United States. The stock currently has a dividend yield of 2.1%. PGR has a PE ratio of 15. Currently there are 6 analysts that rate Progressive a buy, 4 analysts rate it a sell, and 7 rate it a hold.
The average volume for Progressive has been 3.6 million shares per day over the past 30 days. Progressive has a market cap of $19.6 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.90 and a short float of 3.1% with 6.36 days to cover. Shares are up 22.8% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Progressive as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 13.1%. Since the same quarter one year prior, revenues rose by 10.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, PGR's share price has jumped by 29.98%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PGR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Insurance industry and the overall market, PROGRESSIVE CORP-OHIO's return on equity exceeds that of both the industry average and the S&P 500.
- Despite currently having a low debt-to-equity ratio of 0.36, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
- The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Insurance industry average. The net income has decreased by 6.0% when compared to the same quarter one year ago, dropping from $296.10 million to $278.30 million.
- You can view the full Progressive Ratings Report.
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