The Allstate Corporation (ALL): Among Billionaire Nelson Peltz's Stock Picks with Highest Upside Potential

We recently published a list of Billionaire Nelson Peltz’s 8 Stock Picks with Highest Upside Potential. In this article, we are going to take a look at where The Allstate Corporation (NYSE:ALL) stands against other billionaire Nelson Peltz’s stock picks with highest upside potential.

Nelson Peltz is one of the renowned figures in the financial world mainly due to his role as a billionaire who has served as a board member of some large corporations and also due to being the co-founder of Trian Fund Management. As per Forbes, his current net worth is $1.6 billion whereas Trian Fund Management has around $8.5 billion as assets under management.

Nelson Peltz was born in 1942 and entered the business world through his family’s wholesale food distribution company A. Peltz & Sons. He started his journey as a delivery truck driver and later transformed the company with his brother Peter May. Peltz shifted the gears of his family business by transitioning its focus to international frozen foods and launched a new brand called Flagstaff Corp, which later went public and was sold for $150 million in 1972.

Later, Peltz turned his modest income to build a multi-million fortune by a series of bold moves, starting with leveraged buyouts financed with junk bonds. For reference, junk bonds are bonds with a higher risk of default as compared to other bonds issued by corporations and governments. However, because of this higher risk investors are compensated with lucrative interest rates, therefore junk bonds are also high-yield bonds.

Notably, Peltz acquired Triangle Industries in 1983 and later sold it for $4 billion 5 years later. He also acquired Snapple, turned its business to profitability, and sold it 3 years later at a significant upside. These numerous acquisitions of underperforming and undervalued businesses, being sold at profitability, demonstrate his ability to fix businesses. Nelson Peltz has a famous quote that says:

“I spent most of my career operating businesses and fixing businesses, not staring at a Bloomberg screen.”

The form of investment that billionaire Peltz follows is known as Activist Investment, which essentially means an investor or a group of investors buys a stake in a public company to influence the operations of the company. Mostly, activist investors do this by taking a seat on the board of directors. Peltz defines an activist investor in a quote that says:

“The activists play the balance sheet by selling a division to buy back stock and leveraging the balance sheet and buying back more stock.”

Currently, Peltz is the co-founder of Trian Fund and also serves on the boards of some major public corporations. As of March 2024, Trian Fund Management oversees discretionary assets totaling $6,202,444,791 for 25 clients.

Our Methodology

To compile the list of billionaire Nelson Peltz’s 8 stock picks with the highest upside potential, we sifted through 13F filings of Trian Partners, from Insider Monkey. From these filings, we checked each stock’s upside potential from CNN and ranked the stocks in ascending order of the upside potential. We have also added the Trian Partners stake in each company and the hedge fund sentiment around each stock. Please note that the data was recorded on April 21, 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

The Allstate Corporation (NYSE:ALL)

Trian Partners’ Stake: $59,132,934 

Number of Hedge Fund Holders: 71

Analyst Upside Potential: 16.61%

The Allstate Corporation (NYSE:ALL) is an insurance provider that covers a range of needs for both individuals and businesses. Its portfolio ranges from auto insurance to life and health insurance. The company operates through a wide network of Allstate agents, independent agents, benefits brokers, and online channels.

On April 22, Joshua Shanker, an analyst from Bank of America Securities, reiterated the Buy rating on the stock while keeping the price target the same at $279. The company faced higher than anticipated catastrophe losses during the fiscal fourth quarter of 2024, which increased $294 million year-over-year to reach $315 million. This was mainly due to Hurricane Milton and re-estimates for Hurricane Helene. Nevertheless, the analyst noted that The Allstate Corporation (NYSE:ALL) was able to manage these losses effectively and has shown resilience by adjusting its premium written projections upwards. The company increased its premiums by 15.3% year-over-year reflecting higher average premiums and policies in force growth of 2.4%.

Looking ahead, The Allstate Corporation (NYSE:ALL) expects to close the sale of its employer voluntary benefits business to Stancorp Financial for $2 billion and health business to Nationwide for $1.25 billion. Both deals are expected to close in 2025. Analysts expect more than 16% upside for the stock and billionaire Nelson Peltz has a stake worth more than $59 million. It is one of the billionaire Nelson Peltz’s stock picks with the highest upside potential.

Overall, ALL ranks 6th on our list of billionaire Nelson Peltz’s stock picks with highest upside potential. While we acknowledge the potential of ALL to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ALL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.