Allstate (ALL) closed at $201.31 in the latest trading session, marking a +2.84% move from the prior day. This change outpaced the S&P 500's 0.52% gain on the day. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 0.48%.
The stock of insurer has fallen by 6.72% in the past month, lagging the Finance sector's gain of 2.2% and the S&P 500's gain of 4.27%.
The investment community will be paying close attention to the earnings performance of Allstate in its upcoming release. On that day, Allstate is projected to report earnings of $3.2 per share, which would represent year-over-year growth of 98.76%. At the same time, our most recent consensus estimate is projecting a revenue of $17.29 billion, reflecting a 9.29% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.2 per share and a revenue of $69.19 billion, signifying shifts of -0.66% and +7.55%, respectively, from the last year.
Any recent changes to analyst estimates for Allstate should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.77% rise in the Zacks Consensus EPS estimate. Allstate is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Allstate currently has a Forward P/E ratio of 10.76. This signifies a discount in comparison to the average Forward P/E of 11.84 for its industry.
We can also see that ALL currently has a PEG ratio of 1.02. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Insurance - Property and Casualty industry stood at 2.7 at the close of the market yesterday.
The Insurance - Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 50, positioning it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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