11 Most Undervalued Long Term Stocks to Buy According to Hedge Funds

5. The Progressive Corporation (NYSE:PGR)

Forward P/E: ~14x

5-year Revenue Growth: ~15.2%

Number of Hedge Fund Holders: 91

The Progressive Corporation (NYSE:PGR) is one of the Most Undervalued Long Term Stocks to Buy According to Hedge Funds. On August 5, analyst Elyse Greenspan of Wells Fargo maintained a “Buy” rating on the company’s stock, boosting the price objective to $333.00. The analyst’s rating is backed by the company’s strategic management of its expenses and pricing strategies. The Progressive Corporation (NYSE:PGR) exhibited operating leverage by improving the expense ratio, excluding advertising spend, indicating efficient cost management.

Furthermore, The Progressive Corporation (NYSE:PGR)’s decision to maintain increased advertising expenditure exhibits a commitment to growth, which can enhance its market position. Despite the concerns related to the tariff uncertainties and potential impacts on loss costs, The Progressive Corporation (NYSE:PGR) kept its personal auto rates stable and adequately priced in most states. Also, The Progressive Corporation (NYSE:PGR) remains proactive in adjusting rates for personal property and commercial auto, demonstrating its adaptability to market conditions.

Parnassus Investments, an investment management firm that focuses on owning a concentrated portfolio of U.S. large-cap stocks, released its Q2 2025 investor letter. Here is what the fund said:

“The Progressive Corporation (NYSE:PGR) underperformed as growth in policies slowed down. Investors also grew concerned about the impact of tariffs on costs. The company remains well positioned to outperform peers over the long term given its scale.”