15 Best Fundamental Stocks to Buy According to Hedge Funds

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7. The Progressive Corporation (NYSE:PGR)

5-Year Revenue Growth Rate: 14.08%

Number of Hedge Fund Holders: 91

The Progressive Corporation (NYSE:PGR) ranks among the best fundamental stocks to buy according to hedge funds. On June 20, Keefe, Bruyette & Woods reaffirmed its Market Perform rating for The Progressive Corporation (NYSE:PGR), citing a $288 price target.

The research firm boosted its earnings per share estimates for 2025 and 2026 from $15.25 and $14.65 to $16.20 and $14.85, respectively. Additionally, KBW presented an estimated $15.85 in EPS for The Progressive Corporation (NYSE:PGR) in 2027.

The upward revision comes after Progressive’s May 2025 earnings report. According to Keefe, Bruyette & Woods, the enhanced outlook was primarily driven by reduced expense ratios, larger reserve releases, and faster growth in investment income.

That said, the firm voiced concerns regarding near-term pressure on Progressive’s core loss ratio, citing limited earned rate increases and normalizing frequency benefits.

One of the leading insurance holding companies in the United States, The Progressive Corporation (NYSE:PGR) offers residential property insurance in addition to commercial and personal auto insurance.

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