Is Allstate (ALL) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Allstate (ALL) is a stock many investors are watching right now. ALL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.04 right now. For comparison, its industry sports an average P/E of 29.71. Over the last 12 months, ALL's Forward P/E has been as high as 12.58 and as low as -83.58, with a median of 11.13.
Investors will also notice that ALL has a PEG ratio of 1.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALL's PEG compares to its industry's average PEG of 2.99. Over the last 12 months, ALL's PEG has been as high as 1.80 and as low as -11.94, with a median of 1.53.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ALL has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.33.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Allstate is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ALL feels like a great value stock at the moment.
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The Allstate Corporation (ALL) : Free Stock Analysis Report