With the current market volatility in early 2025, it has been challenging to find stocks that stand out as solid long-term investments. Many stocks, particularly in the tech sector, have been experiencing significant ups and downs. However, Progressive (PGR) has been a standout performer, and after closely analyzing it over the past week, I believe it’s worth a deeper look as a potential buy-and-hold investment.
Progressive's Recent Performance
Progressive's stock has shown strong growth in 2025 despite the broader market struggling. As of today, the stock is up 2.13%, and over the last five days, it has risen 5.75%. In the past month, it has climbed an impressive 12.8%, making it one of the best-performing stocks in the insurance sector.
Comparing this to the S&P 500, which has been largely flat or slightly negative, Progressive’s resilience is even more apparent. The S&P 500 has fallen 2.66% in the past five days and is barely up 1.48% year-to-date. In contrast, Progressive is up 15.74% year-to-date, significantly outperforming the market.
Over the last full year, Progressive has gained 43.8%, which is more than double the return of the S&P 500. If you look at a five-year timeline, Progressive has increased 101.58%, nearly tripling the S&P 500’s growth over that period. Unlike many high-growth stocks, which can be volatile, Progressive has shown consistent upward momentum with very few major dips.
Why is Progressive Performing So Well?
Progressive is one of the largest insurance companies in the U.S., covering auto, home, life, pet insurance, and even some financial services. Their aggressive marketing strategy, including their well-known TV commercials, has made them a household name. They continue to expand market share while maintaining solid profit margins.
Insurance is often seen as a recession-resistant industry since people will always need auto and home insurance, regardless of economic conditions. This makes Progressive an attractive stock, especially in uncertain economic times.
Fundamentals: Price-to-Earnings Ratio & Dividend Yield
One key metric I like to examine when considering a stock is the Price-to-Earnings (P/E) ratio. Progressive currently has a P/E ratio of around 19.34, which is lower than the S&P 500’s average (~28.8). A lower P/E ratio suggests that the stock is not overvalued and may offer good value for long-term investors.
Another consideration is the dividend yield. While Progressive does pay a dividend, it is relatively small (around 1.8%). This isn't a high-yield dividend stock, but it does provide some passive income in addition to its strong price appreciation.
Market Sentiment & Analysts’ Views
Progressive has been getting a lot of attention from both hedge funds and financial analysts. Recently, Yahoo Finance listed it as one of the best non-tech stocks to buy for the long term, and nearly 100 hedge funds currently hold a stake in Progressive.
According to Robinhood’s analyst ratings, 68% of analysts rate it a “Buy”, while 27% recommend holding and only 4.5% suggest selling. This level of optimism suggests that Progressive is widely viewed as a strong investment.
Employee Satisfaction & Company Management
Another factor I consider is employee sentiment, as it gives insight into how well the company is managed internally. Progressive scores 3.9 out of 5 stars from employees, with 75% recommending it as a workplace. CEO Tricia Griffith has an impressive 90% approval rating, indicating strong leadership.
A well-managed company with satisfied employees is often an indicator of long-term success and stability.
Final Thoughts: Is Progressive a Good Buy?
With its steady upward trend, strong fundamentals, and recession-resistant business model, Progressive appears to be a solid stock to consider for long-term growth. While tech stocks have been struggling, Progressive has remained strong, making it a good way to diversify a portfolio beyond just AI and technology.
Personally, I have bought some shares of Progressive as a long-term hold. While I still believe in the future of AI and tech stocks, I also recognize the importance of having a mix of stable, defensive stocks in my portfolio. Progressive fits that role perfectly.
That being said, this is not financial advice—I always encourage doing your own research before making investment decisions. But if you’re looking for a non-tech stock with strong performance, Progressive is certainly worth considering.