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Are Investors Undervaluing Allstate (ALL) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is Allstate (ALL - Free Report) . ALL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.45 right now. For comparison, its industry sports an average P/E of 23.99. ALL's Forward P/E has been as high as 11.46 and as low as 8.42, with a median of 10.24, all within the past year.
ALL is also sporting a PEG ratio of 1.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALL's PEG compares to its industry's average PEG of 2.87. Over the past 52 weeks, ALL's PEG has been as high as 1.38 and as low as 1.01, with a median of 1.23.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ALL has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.11.
Finally, investors should note that ALL has a P/CF ratio of 10.69. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.06. ALL's P/CF has been as high as 11.94 and as low as 6.08, with a median of 10.53, all within the past year.
These are just a handful of the figures considered in Allstate's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ALL is an impressive value stock right now.
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Are Investors Undervaluing Allstate (ALL) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is Allstate (ALL - Free Report) . ALL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.45 right now. For comparison, its industry sports an average P/E of 23.99. ALL's Forward P/E has been as high as 11.46 and as low as 8.42, with a median of 10.24, all within the past year.
ALL is also sporting a PEG ratio of 1.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALL's PEG compares to its industry's average PEG of 2.87. Over the past 52 weeks, ALL's PEG has been as high as 1.38 and as low as 1.01, with a median of 1.23.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ALL has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.11.
Finally, investors should note that ALL has a P/CF ratio of 10.69. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.06. ALL's P/CF has been as high as 11.94 and as low as 6.08, with a median of 10.53, all within the past year.
These are just a handful of the figures considered in Allstate's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ALL is an impressive value stock right now.