Insurance giant Progressive Corporation PGR and banking leader PNC Financial Services Group PNC are two top-rated finance stocks to consider after exceeding their Q3 top and bottom line expectations on Tuesday.
Here’s a brief review of their Q3 reports and a look at why now is still a good time to buy Progressive shares which have soared nearly +60% year to date and PNC’s stock which has risen over +20% in 2024.
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Progressive’s Q3 Results
An Impressive Performance
Progressive’s Q3 sales of $19.43 billion exceeded estimates by 2%, marking a 24% increase from the comparative quarter. The surge in net premiums written led to a sharp spike in earnings, with Q3 EPS of $3.58, soaring 71% from a year ago. This surpassed estimates by 5% and underscored the company’s consistent outperformance.
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PNC’s Q3 Results
Steady Growth Amid Challenges
PNC reported Q3 sales of $5.43 billion, showcasing a 3% increase year over year. Despite facing a decline in bottom line figures due to lower interest payments and increased loan reserves, the bank managed to surpass EPS estimates, reflecting resilience in a challenging environment.
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PGR & PNC’s Attractive Valuation (P/E)
Progressive and PNC present compelling investment opportunities, with their fiscal 2024 and FY25 EPS estimates on an upward trajectory. Both companies boast reasonable forward P/E multiples of 19.6X and 14.4X, respectively, making them attractive picks for discerning investors.
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The Path Ahead
Following their stellar Q3 performances, Progressive and PNC are poised for continued growth. With earnings estimates likely to see upward revisions in the coming weeks, investors can expect further appreciation in these standout finance stocks, making them sound long-term investment choices at their current valuation levels.
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The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report
The Progressive Corporation (PGR) : Free Stock Analysis Report