Unlock stock picks and a broker-level newsfeed that powers Wall Street.

Allstate (ALL) Stock Sinks As Market Gains: Here's Why

In This Article:

Allstate (ALL) closed at $204.87 in the latest trading session, marking a -0.23% move from the prior day. This change lagged the S&P 500's daily gain of 1.08%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.41%.

Coming into today, shares of the insurer had gained 8.67% in the past month. In that same time, the Finance sector lost 4.3%, while the S&P 500 lost 8.26%.

Investors will be eagerly watching for the performance of Allstate in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.98, showcasing a 22.42% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $17.13 billion, up 11.04% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $18.62 per share and a revenue of $69.64 billion, indicating changes of +1.64% and +8.26%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Allstate. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, the Zacks Consensus EPS estimate has moved 0.17% 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 11.03 right now. This represents a discount compared to its industry's average Forward P/E of 11.76.

Also, we should mention that ALL has a PEG ratio of 1.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Insurance - Property and Casualty industry was having an average PEG ratio of 1.71.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 35, finds itself in the top 14% echelons of all 250+ industries.