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

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In the latest close session, Allstate (ALL - Free Report) was up +1.4% at $212.76. This move outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, added 0.44%.

Heading into today, shares of the insurer had gained 2.97% over the past month, outpacing the Finance sector's gain of 1.64% and the S&P 500's gain of 2.72%.

Analysts and investors alike will be keeping a close eye on the performance of Allstate in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $5.34, marking a 36.57% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $17.36 billion, showing a 5.95% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $21.5 per share and revenue of $69.03 billion. These totals would mark changes of +17.36% and +7.31%, respectively, from last year.

Any recent changes to analyst estimates for Allstate should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 2.7% higher. Allstate presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Allstate is currently trading at a Forward P/E ratio of 9.76. This indicates a discount in contrast to its industry's Forward P/E of 11.31.

It is also worth noting that ALL currently has a PEG ratio of 0.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Insurance - Property and Casualty industry had an average PEG ratio of 2.51 as trading concluded yesterday.

The Insurance - Property and Casualty industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 34, placing it within the top 14% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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