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

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In the latest trading session, Allstate (ALL - Free Report) closed at $191.82, marking a -0.55% move from the previous day. This move lagged the S&P 500's daily gain of 0.25%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.56%.

The insurer's stock has climbed by 5.35% in the past month, exceeding the Finance sector's gain of 1.86% and the S&P 500's gain of 1.65%.

The investment community will be closely monitoring the performance of Allstate in its forthcoming earnings report. The company is expected to report EPS of $3.27, up 303.7% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $16.24 billion, indicating a 11.35% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.20 per share and a revenue of $63.73 billion, indicating changes of +1500% and +11.03%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Allstate. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.41% higher. Allstate is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Allstate has a Forward P/E ratio of 12.69 right now. This denotes a discount relative to the industry's average Forward P/E of 13.83.

Also, we should mention that ALL has a PEG ratio of 1.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.51 based on yesterday's closing prices.

The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 20, positioning 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 contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ALL in the coming trading sessions, be sure to utilize Zacks.com.


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