Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Progressive Corp. (PGR), Allstate Corp. (ALL), Infinity Property and Casualty Corp. (IPCC), State Auto Financial Corp. (STFC) and Darden Restaurants Inc. (DRI).

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Here are highlights from Monday's Analyst Blog:

Progressive Impressive in August

Progressive Corp.'s (PGR) earnings for August were impressive as the company benefited from an increase in premiums written and steered clear of investment losses. However, Commercial Auto still remained a drag. The company, which reports earnings on a monthly basis, posted a profit of $55 million, or 8 cents per share, compared to a loss of $135.2 million, or 20 cents, a year ago.

Progressive's net premiums written rose 4% year over year to $1.1 billion. It recorded a pretax investment gain of $5.6 million, compared to a loss of $317.5 million in the year-ago period. Combined ratio, which reflects the percentage of premiums paid out as claims and expenses, slightly deteriorated to 95.5% from 94.3% in the last year.

On Aug. 31, book value per share was $7.82 compared to $7.62 on July 31 and $7.24 on June 30. In August, the company repurchased 1.5 million shares at an average price of $16.66.

The economic downturn combined with increased competition has badly affected Progressive's Commercial Auto and Agency Auto businesses. Policies in force in August for Commercial Auto and Agency Auto were down 5% and 1%, respectively. However, Direct Auto and Special Lines were up 12% and 3%, respectively.

Year to date, Progressive has earned $652.5 million, or 97 cents per share, compared to $401.5 million, or 59 cents, in the comparable prior-year period.

The balance sheets of auto insurance providers like Progressive, Allstate Corp. (ALL), Infinity Property and Casualty Corp. (IPCC) and State Auto Financial Corp. (STFC) have been severely hurt by the economic crisis, which has significantly hampered consumer confidence and their ability to purchase automobile insurance policies.

Darden Finds Secure Footing

Fitch recently revised its outlook on Darden Restaurants Inc. (DRI) to "Stable" from "Negative". The rating agency believes that the company is well positioned in the casual dining segment, which is still recuperating from the economic turmoil, plagued by rising unemployment and weak consumer spending.

The revision in outlook reflects Darden's competitive edge and its ability to generate significant cash flow. The company's same-store sales fell 1.4% in fiscal 2009 compared to the estimated 5.6% decline for the Knapp-Track benchmark of US comps for casual dining chains. Moreover, Darden's cash flow from operations increased 2.2% to $783.5 million during the year.

Moderating food costs coupled with the company's cost-control measures and synergies from its RARE Hospitality International acquisition should facilitate cash flow generation. Free cash flow totaled $138 million at the end of fiscal 2009.

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