Buy This Cheap Stock Before Everyone Else Does
When lockdowns were initiated in March of 2020 in response to the coronavirus pandemic, many businesses took a hit, but one industry thrived -- auto insurers. With fewer drivers on the road, accidents went down and claims were low.
Progressive (NYSE: PGR) was one company that benefited and saw impressive profitability as a result. However, 2021 hasn't been as kind to the insurer. Extreme weather events earlier this year, like the Texas freeze, put pressure on property insurers in that region, including Progressive.
Not only that, but Hurricane Ida made things worse in the third quarter, and rising repair costs pushed claims costs even higher. As a result, Progressive's stock has taken a hit. However, given its history of profitability and ability to adapt premiums, I like this value stock to bounce back from here.
Source Fool.com
