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Allstate (ALL) Beats Stock Market Upswing: What Investors Need to Know

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In the latest trading session, Allstate (ALL - Free Report) closed at $206.82, marking a +2.8% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 1.35%, while the tech-heavy Nasdaq depreciated by 0.26%.

Shares of the insurer witnessed a loss of 3.83% over the previous month, trailing the performance of the Finance sector with its gain of 1.99%, and the S&P 500's gain of 0.89%.

Market participants will be closely following the financial results of Allstate in its upcoming release. In that report, analysts expect Allstate to post earnings of $8.05 per share. This would mark year-over-year growth of 4.95%. Simultaneously, our latest consensus estimate expects the revenue to be $17.63 billion, showing a 5.53% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $28.21 per share and revenue of $68.95 billion. These totals would mark changes of +53.98% and +7.19%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Allstate. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.49% higher within the past month. Right now, Allstate possesses a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Allstate has a Forward P/E ratio of 7.13 right now. This valuation marks a discount compared to its industry average Forward P/E of 11.28.

It is also worth noting that ALL currently has a PEG ratio of 0.38. 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. ALL's industry had an average PEG ratio of 1.6 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 28, finds itself in the top 12% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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