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Investor Steve Eisman, known for his role in the 2015 movie “The Big Short,” is backing a major insurance stock he believes is undervalued at current levels.
On The Real Eisman Playbook podcast on Friday, Eisman addressed a listener’s question regarding an insurance stock, which has been beaten down in recent months, and as a result, represents a significant value investing opportunity at current levels.
The stock in question is Ohio-based Progressive Corp. (NYSE:PGR), which Eisman said he has owned “for a number of years.”
“Progressive has a business model that is shared by a few great companies in mature industries,” Eisman said, comparing it to Walmart Inc. (NYSE:WMT) and T-Mobile US Inc. (NASDAQ:TMUS), highlighting their ability to operate more efficiently relative to competitors, while delivering cheaper products and services.
This quality, according to Eisman, allows them to “keep taking market share slowly but inexorably,” despite being faced with rising competitive pressures. “That’s why if you own Progressive, you will make money over time.”
Still, Eisman acknowledged the stock isn't immune to market cycles. “Sometimes it is raising prices and growing revenues quickly, and sometimes, like now, competition heats up and revenue growth slows,” he said.
He said the stock was “pretty inexpensive right now at around 13.5 times the current 2026 consensus estimate,” adding that, “if you are patient, I think now is a good time to buy it.”
Progressive reported a weaker-than-expected third-quarter performance last month, missing consensus estimates on the top and bottom lines, with $20.849 billion in revenue and $4.06 per share in earnings.
Most analysts covering the stock lowered their Price Targets following the results, barring Bank of America Securities’ Joshua Shanker, who raised the target marginally from $350 to $351, representing an upside of 55.12%. The average consensus Price Target for the stock now stands at $263.07, an upside of 15.93% from current levels.
The stock is down 5.71% year-to-date and currently trades at under 13 times earnings and 1.57 times sales. Its relative strength index (RSI) sits at 55.1, signaling a neutral-to-bullish setup that leans toward a “Buy” rating.
Shares of Progressive were up 0.40% on Friday, closing at $226.91, and are up 0.04% overnight. The stock scores high on Growth and Value in Benzinga’s Edge Stock Rankings, with an unfavorable price trend in the short, medium and long terms. Click here for deeper insights into the company, its peers and competitors.
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