Leading insurance provider Progressive PGR is set to report Q1 results on Wednesday before the opening bell. A Zacks Rank #3 (Hold), Progressive missed the earnings mark in two of the past four quarters. But with markets roaring back after a weak start to the year, is the stock a buy prior to the release?
Find the latest EPS estimates and surprises on Zacks Earnings Calendar .
Analysts are expecting the company to post a profit of $4.77 per share, reflecting a 2.6% improvement versus the same quarter last year. Sales are projected to jump 9.7% to $22.62 billion during the quarter.
Progressive’s business remains steady due to improving retention rates. Yet PGR shares are down roughly 20% over the past year and are underperforming the major indexes. The nation’s second-largest auto insurer posted a -1.6% average earnings surprise over the last four quarters.
Our proprietary Zacks Earnings Expected Surprise Prediction (ESP) indicator conclusively predicts a Q1 earnings beat. Still, investors would be wise to exercise caution ahead of the upcoming announcement as stocks can be volatile surrounding earnings releases.
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This article originally published on Zacks Investment Research (zacks.com).