Allstate (ALL) Rises But Trails Market: What Investors Should Know
In the latest market close, Allstate (ALL) reached $182.87, with a +0.89% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.45%.
The insurer's stock has dropped by 3.18% in the past month, exceeding the Finance sector's loss of 4.16% and lagging the S&P 500's gain of 5.41%.
The investment community will be paying close attention to the earnings performance of Allstate in its upcoming release. The company is slated to reveal its earnings on October 30, 2024. The company is expected to report EPS of $3.18, up 292.59% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $16.24 billion, indicating a 11.36% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.12 per share and a revenue of $63.73 billion, indicating changes of +1491.58% and +11.04%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Allstate. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% lower. Allstate is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Allstate has a Forward P/E ratio of 11.99 right now. Its industry sports an average Forward P/E of 13.21, so one might conclude that Allstate is trading at a discount comparatively.
It's also important to note that ALL currently trades at a PEG ratio of 1.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Insurance - Property and Casualty industry currently had an average PEG ratio of 1.58 as of yesterday's close.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 26, finds itself in the top 11% echelons of all 250+ industries.
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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The Allstate Corporation (ALL) : Free Stock Analysis Report