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Why Allstate (ALL) Outpaced the Stock Market Today

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Allstate (ALL - Free Report) closed at $189.65 in the latest trading session, marking a +0.68% move from the prior day. This move outpaced the S&P 500's daily gain of 0.42%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.38%.

Heading into today, shares of the insurer had lost 0.31% over the past month, lagging the Finance sector's gain of 1.23% and the S&P 500's gain of 2.06% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Allstate in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.27, reflecting a 303.7% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $16.24 billion, indicating a 11.36% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.20 per share and revenue of $63.73 billion. These totals would mark changes of +1500% and +11.04%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Allstate. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. Allstate currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Allstate is currently being traded at a Forward P/E ratio of 12.39. This expresses a discount compared to the average Forward P/E of 13.69 of its industry.

It is also worth noting that ALL currently has a PEG ratio of 1.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ALL's industry had an average PEG ratio of 1.51 as of yesterday's close.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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