Here's a Sign Things Are Looking Up for This Value Stock
Following Progressive's (NYSE: PGR) April earnings, which were announced in mid-May, investors were less than enthused. The insurer posted figures that made investors cautious, as profitability was hurt in the quarter due to increased claims. The stock dropped nearly 14% following the announcement.
Progressive recently presented solid May earnings figures and the value stock saw its price rebound as a result. The insurer saw its profitability metrics bounce back, more in line with its historical performance -- a good sign that the insurer will post another stellar quarterly earnings period when results are announced this month.
Progressive reported its May financials, and in that investors saw net premiums written and net premiums earned increase 7% and 13% from last year, respectively. Policies in force increased 11% to $26.2 billion from last year as well. Moving to the bottom line, net income for the month was down 7% -- mainly due to a 31% decrease in net realized gains compared to last year.
Source Fool.com
