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Why Allstate (ALL) Outpaced the Stock Market Today

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Allstate (ALL - Free Report) ended the recent trading session at $207.92, demonstrating a +1.14% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.62% for the day. At the same time, the Dow added 0.99%, and the tech-heavy Nasdaq gained 0.65%.

The insurer's shares have seen an increase of 2.34% over the last month, not keeping up with the Finance sector's gain of 2.85% and outstripping the S&P 500's gain of 0.59%.

Investors will be eagerly watching for the performance of Allstate in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $8.72, marking a 13.69% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $17.63 billion, indicating a 5.53% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $28.81 per share and a revenue of $68.96 billion, indicating changes of +57.26% and 0%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Allstate. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.88% downward. Allstate is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Allstate is holding a Forward P/E ratio of 8.6. This expresses a discount compared to the average Forward P/E of 10.71 of its industry.

One should further note that ALL currently holds a PEG ratio of 0.46. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Insurance - Property and Casualty industry had an average PEG ratio of 1.53.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 96, finds itself in the top 40% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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