The Progressive Corporation (PGR) Surged after Reporting Strong Earnings

Impax Asset Management, an investment management company, released its “Impax US Sustainable Economy Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. US large-cap equity fell in the quarter following the uncertainty surrounding US tariffs. In the first quarter of 2025, the fund underperformed the Russell 1000 benchmark. Negative stock selection and lack of energy exposure led to the underperformance of the fund in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Impax US Sustainable Economy Fund highlighted stocks such as The Progressive Corporation (NYSE:PGR). The Progressive Corporation (NYSE:PGR) is a US-based insurance company. The one-month return of The Progressive Corporation (NYSE:PGR) was -0.62%, and its shares gained 32.36% of their value over the last 52 weeks. On June 4, 2025, The Progressive Corporation (NYSE:PGR) stock closed at $282.17 per share with a market capitalization of $165.415 billion.

Impax US Sustainable Economy Fund stated the following regarding The Progressive Corporation (NYSE:PGR) in its Q1 2025 investor letter:

“The Progressive Corporation (NYSE:PGR) (Financials) is a property and casualty insurer which offers reasonably priced insurance to customers across the socio economic spectrum, which aligns well with social opportunities like access to finance and meeting basic needs. The stock surged after reported earnings that exceeded expectations driven by lower catastrophe losses and more favorable outcomes that expected from the hurricane events in the US south last year.”

Is Progressive Corporation (PGR) the Best Low Volatility Stock to Buy Now?

A team of accountants in a boardroom, discussing strategic moves of an insurance company.

The Progressive Corporation (NYSE:PGR) is in 30th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 91 hedge fund portfolios held The Progressive Corporation (NYSE:PGR) at the end of the first quarter compared to 100 in the third quarter. While we acknowledge the potential of The Progressive Corporation (NYSE:PGR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered The Progressive Corporation (NYSE:PGR) and shared Baron FinTech Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.