Here’s Why The Progressive Corporation (PGR) Detracted in Q3

Middle Coast Investing, an investment advisor firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was favorable for Middle Coast Investing. Its collective portfolio outperformed the S&P 500 and is ahead of benchmarks year to date. In Q3 2025, the US Portfolios returned 9.6% compared to 7.8% for the S&P 500. It’s Core U.S. portfolios returned 10% while the Russell 2000 returned 12%, the S&P 600 returned 8.7% and the Nasdaq generated 11.2% for the same period. Also, its European Portfolios appreciated by 5.5%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Middle Coast Investing 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 -1.02%, and its shares lost 0.85% of their value over the last 52 weeks. On October 3, 2025, The Progressive Corporation (NYSE:PGR) stock closed at $245.70 per share, with a market capitalization of $144.03 billion.

Middle Coast Investing stated the following regarding The Progressive Corporation (NYSE:PGR) in its third quarter 2025 investor letter:

“The Progressive Corporation (NYSE:PGR) is the least concerning of our performance detractors this quarter. It has been our second biggest loser two quarters in a row – reflective of how big a position it is – and is just above flat on the year. Analyst earnings estimates continue to rise.

The Progressive Corporation (NYSE:PGR) is in the 30th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held The Progressive Corporation (NYSE:PGR) at the end of the second quarter, which was 91 in the previous quarter. While we acknowledge the potential of THE PROGRESSIVE CORPORATION (NYSE:PGR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.