In the latest trading session, Allstate (ALL) closed at $200.32, marking a +2.11% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.38%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.24%.
The insurer's stock has dropped by 2.2% in the past month, falling short of the Finance sector's gain of 2.88% and the S&P 500's gain of 6.6%.
Market participants will be closely following the financial results of Allstate in its upcoming release. The company is expected to report EPS of $3.2, up 98.76% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $17.29 billion, indicating a 9.29% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.2 per share and revenue of $69.19 billion, indicating changes of -0.66% and +7.55%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.69% higher. Allstate is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Allstate is currently exchanging hands at a Forward P/E ratio of 10.78. This denotes a discount relative to the industry average Forward P/E of 11.73.
Meanwhile, ALL's PEG ratio is currently 1.02. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Insurance - Property and Casualty industry held an average PEG ratio of 2.69.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 50, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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The Allstate Corporation (ALL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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