A strong stock as of late has been Allstate (ALL). Shares have been marching higher, with the stock up 10.9% over the past month. The stock hit a new 52-week high of $215.89 in the previous session. Allstate has gained 11.2% since the start of the year compared to the 11.3% gain for the Zacks Finance sector and the 10.9% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on November 5, 2025, Allstate reported EPS of $11.17 versus consensus estimate of $8.2 while it missed the consensus revenue estimate by 2.02%.
For the current fiscal year, Allstate is expected to post earnings of $28.22 per share on $68.95 in revenues. This represents a 54.04% change in EPS on a 7.19% change in revenues. For the next fiscal year, the company is expected to earn $24.07 per share on $72.91 in revenues. This represents a year-over-year change of -14.71% and 5.74%, respectively.
Valuation Metrics
While Allstate has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Allstate has a Value Score of A. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.2X. On a trailing cash flow basis, the stock currently trades at 10.2X versus its peer group's average of 12.6X. Additionally, the stock has a PEG ratio of 0.4. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Allstate an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Allstate currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Allstate passes the test. Thus, it seems as though Allstate shares could have potential in the weeks and months to come.
How Does ALL Stack Up to the Competition?
Shares of ALL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The Travelers Companies, Inc. (TRV). TRV has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of D.
Earnings were strong last quarter. The Travelers Companies, Inc. beat our consensus estimate by 35.44%, and for the current fiscal year, TRV is expected to post earnings of $26.41 per share on revenue of $48.83 billion.
Shares of The Travelers Companies, Inc. have gained 7.5% over the past month, and currently trade at a forward P/E of 11.72X and a P/CF of 5.18X.
The Insurance - Property and Casualty industry is in the top 10% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ALL and TRV, even beyond their own solid fundamental situation.
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The Allstate Corporation (ALL): Free Stock Analysis Report The Travelers Companies, Inc. (TRV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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