Think Progressive Stock Is Expensive? This Chart Might Change Your Mind.

Investors have been drawn to Progressive (NYSE: PGR) stock lately, in part because the insurer posted some encouraging numbers in its first-quarter earnings report. There's a price to pay for popularity, however.At the moment, on several valuation metrics, Progressive is more expensive than several well-known peers. Yet, you have to pay a premium for quality, and this applies in Progressive's case.Insurance companies that offer auto coverage -- a Progressive strength -- rebounded from the stay-at-home pandemic era quite nicely (although much of this has to do with the unpopular rate increases that have been common). However, this is a competitive field, and numerous competitors are vying to provide similar coverage in a market that's far more price-sensitive than brand-loyal. So, any company that can find new ways of generating premiums has an edge over its rivals.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool