2024-04-13 11:15:00 ET
Summary
- Vehicle insurance premiums have skyrocketed, contributing to record-high premiums due to industry reshuffling, tech-enabled cars, more accidents, and higher repair costs.
- Progressive Corporation (PGR) is a major player in the auto insurance industry, with strong earnings and growth potential this year.
- However, the stock's valuation is high, and technical indicators suggest a possible pullback, making it prudent to downgrade from a buy to a hold.
- I highlight key price levels to watch as Q2 progresses.
Vehicle insurance premiums have gone through the roof. That comes as no surprise to families across the country. According to the March CPI report, the 3-month annualized rate soared to 26.7%. It was a material driver of the strong core services ex-housing CPI increase. ...
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Progressive: Record Policy-Count Growth Amid Sky-High Auto Premiums (Rating Downgrade)