Allstate (ALL) closed the most recent trading day at $196.05, moving -1.15% from the previous trading session. This move lagged the S&P 500's daily gain of 1.11%. Elsewhere, the Dow gained 1.19%, while the tech-heavy Nasdaq added 1.43%.
The insurer's shares have seen a decrease of 2.42% over the last month, not keeping up with the Finance sector's gain of 1.91% and the S&P 500's gain of 3.92%.
Market participants will be closely following the financial results of Allstate in its upcoming release. The company is forecasted to report an EPS of $3.2, showcasing a 98.76% upward movement from the corresponding quarter of the prior year. 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.2 per share and a revenue of $69.19 billion, representing changes of -0.66% and +7.55%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Allstate. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.69% higher. Currently, Allstate is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Allstate has a Forward P/E ratio of 10.9 right now. This indicates a discount in contrast to its industry's Forward P/E of 11.94.
We can also see that ALL currently has a PEG ratio of 1.03. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Insurance - Property and Casualty industry had an average PEG ratio of 2.74.
The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 55, putting it in the top 23% 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.
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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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