Allstate (ALL) closed the latest trading session at $191.82, marking a slight decline of 0.55% from the previous day. While this move trailed the S&P 500’s daily gain of 0.25%, it’s worth noting that Allstate’s stock has demonstrated strong performance over the past month, climbing by 5.35%. This outpaces both the Finance sector’s gain of 1.86% and the S&P 500’s gain of 1.65%.
The investment community will be closely watching Allstate’s upcoming earnings report. Analysts anticipate the company to report earnings per share (EPS) of $3.27, a staggering 303.7% increase from the same quarter last year. Furthermore, the consensus estimate predicts revenue of $16.24 billion, reflecting an 11.35% upward movement from the corresponding quarter in 2023. Looking at the entire fiscal year, the Zacks Consensus Estimates project earnings of $15.20 per share and a revenue of $63.73 billion, signifying substantial year-over-year changes of +1500% and +11.03%, respectively.
Investors should pay close attention to any recent changes in analyst estimates for Allstate. These revisions often reflect the latest short-term business trends, which can fluctuate frequently. Positive estimate revisions are generally viewed as a signal of analyst optimism about the company’s business and profitability. Empirical research suggests that these revisions in estimates have a direct correlation with future stock price performance. To capitalize on this insight, Zacks has developed the Zacks Rank, a proprietary model that considers these estimated changes and provides an actionable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), boasts a proven track record of outperformance, independently audited. Stocks ranked #1 have historically yielded an average annual return of +25% since 1988. Over the past 30 days, the Zacks Consensus EPS estimate for Allstate has moved 0.41% higher. Currently, Allstate holds a Zacks Rank of #3 (Hold).
Valuation plays a crucial role in investment analysis. Investors should note that Allstate currently has a Forward P/E ratio of 12.69. This indicates a discount relative to the industry’s average Forward P/E of 13.83. Furthermore, Allstate’s PEG ratio is 1.81. Similar to the widely recognized P/E ratio, the PEG ratio takes into account the company’s projected earnings growth. Based on yesterday’s closing prices, Insurance – Property and Casualty stocks, on average, have a PEG ratio of 1.51. The Insurance – Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 20, placing it in the top 8% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research highlights that the top 50% ranked industries outperform the bottom half by a factor of 2 to 1.
