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Allstate (ALL) Exceeds Market Returns: Some Facts to Consider

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Allstate (ALL - Free Report) closed the most recent trading day at $202.52, moving +1.24% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.85% for the day. Elsewhere, the Dow gained 1.36%, while the tech-heavy Nasdaq added 0.72%.

The insurer's shares have seen a decrease of 4.2% over the last month, not keeping up with the Finance sector's gain of 2.7% and the S&P 500's gain of 2.38%.

Investors will be eagerly watching for the performance of Allstate in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.71, signifying a 20.46% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.36 billion, up 5.95% from the year-ago period.

ALL's full-year Zacks Consensus Estimates are calling for earnings of $21.19 per share and revenue of $69.03 billion. These results would represent year-over-year changes of +15.67% and +7.31%, respectively.

Investors should also note any recent changes to analyst estimates for Allstate. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, there's been a 4.19% rise in the Zacks Consensus EPS estimate. As of now, Allstate holds a Zacks Rank of #3 (Hold).

Looking at valuation, Allstate is presently trading at a Forward P/E ratio of 9.44. For comparison, its industry has an average Forward P/E of 11.65, which means Allstate is trading at a discount to the group.

Also, we should mention that ALL has a PEG ratio of 0.8. 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 2.42.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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