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Allstate (ALL) Surpasses Market Returns: Some Facts Worth Knowing

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Allstate (ALL - Free Report) closed at $186.10 in the latest trading session, marking a +0.93% move from the prior day. This move outpaced the S&P 500's daily gain of 0.75%. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 1%.

Shares of the insurer have appreciated by 1.9% over the course of the past month, underperforming the Finance sector's gain of 4.06% and the S&P 500's gain of 4.03%.

The investment community will be closely monitoring the performance of Allstate in its forthcoming earnings report. The company's upcoming EPS is projected at $3.23, signifying a 298.77% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.24 billion, up 11.35% from the year-ago period.

ALL's full-year Zacks Consensus Estimates are calling for earnings of $15.16 per share and revenue of $63.73 billion. These results would represent year-over-year changes of +1495.79% and +11.03%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Allstate. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 1.01% rise in the Zacks Consensus EPS estimate. Allstate is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Allstate is currently exchanging hands at a Forward P/E ratio of 12.17. This indicates a discount in contrast to its industry's Forward P/E of 13.36.

We can additionally observe that ALL currently boasts a PEG ratio of 1.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Insurance - Property and Casualty industry held an average PEG ratio of 1.59.

The Insurance - Property and Casualty industry is part of the Finance sector. With its current Zacks Industry Rank of 52, this industry ranks in the top 21% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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