The latest trading session saw Allstate (ALL – Free Report) ending at $209.28, denoting a +0.56% adjustment from its last day’s close. The stock outperformed the S&P 500, which registered a daily loss of 1.12%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 2.04%.
Coming into today, shares of the insurer had gained 9.26% in the past month. In that same time, the Finance sector lost 0.06%, while the S&P 500 lost 2.91%.
The upcoming earnings release of Allstate will be of great interest to investors. The company’s earnings per share (EPS) are projected to be $3.98, reflecting a 22.42% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $17.13 billion, reflecting a 11.04% rise from the equivalent quarter last year.
ALL’s full-year Zacks Consensus Estimates are calling for earnings of $18.64 per share and revenue of $69.64 billion. These results would represent year-over-year changes of +1.75% and +8.26%, respectively.
It is also important to note the recent changes to analyst estimates for Allstate. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.53% lower. Allstate currently has a Zacks Rank of #3 (Hold).
Investors should also note Allstate’s current valuation metrics, including its Forward P/E ratio of 11.16. For comparison, its industry has an average Forward P/E of 11.82, which means Allstate is trading at a discount to the group.
It is also worth noting that ALL currently has a PEG ratio of 1.14. 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 1.66.
The Insurance – Property and Casualty industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 45, positioning it in the top 18% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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