Allstate (ALL – Free Report) closed at $204.87 in the latest trading session, marking a -0.23% move from the prior day. This change lagged the S&P 500’s daily gain of 1.08%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.41%.
Coming into today, shares of the insurer had gained 8.67% in the past month. In that same time, the Finance sector lost 4.3%, while the S&P 500 lost 8.26%.
Investors will be eagerly watching for the performance of Allstate in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.98, showcasing a 22.42% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $17.13 billion, up 11.04% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $18.62 per share and a revenue of $69.64 billion, indicating changes of +1.64% and +8.26%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Allstate. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Allstate is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Allstate has a Forward P/E ratio of 11.03 right now. This represents a discount compared to its industry’s average Forward P/E of 11.76.
Also, we should mention that ALL has a PEG ratio of 1.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. As the market closed yesterday, the Insurance – Property and Casualty industry was having an average PEG ratio of 1.71.
The Insurance – Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 35, finds itself in the top 14% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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