One stock that might be an intriguing choice for investors right now is The Allstate Corporation (ALL) . This is because this security in the Insurance - Property and Casualty space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective. This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taki ...

February 2026 Monthly Release Accessibility StatementSkip NavigationNORTHBROOK, Ill., March 19, 2026 /PRNewswire/ -- The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of February of $140 million or $111 million, after-tax. Total catastrophe losses for January and February were $315 million or $249 million, after-tax.Allstate Protection policies in force are as follows:Allstate Protection Policies in Force (1)(in thousands)February 28, 2026January 31, 2026Februar ...

Industry Overview - Improved pricing, rising climate-related risks, and rapid digitization are expected to shape the insurance industry's trajectory in 2026 [1] - Global commercial insurance rates fell 4% in Q4 2025, marking the sixth consecutive quarterly decrease due to ample capacity and increased competition among insurers [1] Berkshire Hathaway (BRK.B) - Berkshire Hathaway is a highly diversified conglomerate with over 90 subsidiaries across various industries, including insurance, which accounts for roughly one-fourth of total revenues [4][5] - The insurance segment is well-positioned for continued expansion, supported by steady demand, disciplined underwriting, and favorable pricing conditions [5] - Berkshire has significant cash reserves exceeding $100 billion, allowing it to pursue acquisitions and increase ownership in companies with durable earnings [6][8] - The company's net margin has deteriorated by 840 basis points year over year, and its return on equity of 6.5% lags the industry average of 7.3% [9] - The Zacks Consensus Estimate for BRK.B's 2026 revenues implies a year-over-year increase of 7.2%, while EPS estimates imply a 1.2% increase [17] Allstate Corporation (ALL) - Allstate is the third-largest property and casualty insurer and the largest publicly traded personal lines insurer in the U.S., focusing on personal property-liability insurance and digital capabilities [11][12] - The company is executing a strategic transformation to become more cost-efficient and digitally enabled, with its auto insurance business regaining targeted profitability [12][13] - Allstate's return on equity of 39.2% is significantly above the industry average, reflecting strong profitability from underwriting gains [11][16] - Over the past two years, Allstate's net margin has increased by approximately 1,550 basis points, driven by disciplined underwriting and cost control measures [15] - The Zacks Consensus Estimate for ALL's 2026 revenues implies a year-over-year increase of 5.2%, while EPS estimates imply a 27.1% decrease [18] Investment Considerations - Berkshire is trading at a price-to-book multiple of 1.47, above its five-year median of 1.45, while Allstate's price-to-book multiple is 1.86, lower than its median of 2.17 [20] - Allstate represents a compelling investment opportunity, supported by improved profitability, ongoing digital transformation, and a focus on core personal lines business [22] - Analyst sentiment favors Allstate, which has a Zacks Rank of 1 (Strong Buy), compared to Berkshire's Zacks Rank of 4 (Sell) [23]

Core Insights - The article identifies three overlooked U.S. value stocks—Allstate, Synchrony Financial, and HP Inc.—that are trading at low price-to-earnings ratios and have strong fundamentals, suggesting potential for long-term returns in 2026 [1]. Group 1: Allstate (ALL) - Allstate is a leading U.S. insurance company with a trailing price-earnings ratio around 5 times, making it one of the cheapest large-cap stocks available [1]. - The company achieved a revenue growth of 12% last year and is experiencing expanding operating margins, indicating strong financial health [1]. - Despite favorable market conditions, including a steepening yield curve, Allstate's stock has remained flat, presenting a potential buying opportunity for long-term investors [1]. Group 2: Synchrony Financial (SYF) - Synchrony Financial is trading at less than 7 times earnings, with a net income of approximately $4.5 billion and operating margins around 28% [1]. - The company experienced earnings growth of about 3% last year, showcasing its resilience in the consumer finance sector [1]. - The stock is viewed as a reasonably-priced investment, despite concerns in the consumer lending market, due to its strong balance sheet and staying power [1]. Group 3: HP Inc. (HPQ) - HP Inc. is trading at about 7 times earnings and offers a dividend yield of 6.5%, which is attractive in the current market [1]. - The company reported a 4% revenue growth in the last quarter and improved operating margins by 130 basis points, alongside generating $1.1 billion in free cash flow [1]. - Despite a decline of over 30% in stock price this year, HP is considered a valuable addition to a portfolio due to its strong brand and fundamentals [2].

Core Viewpoint - Allstate's recent earnings report shows strong performance in Q4 2025, with adjusted net income significantly exceeding estimates, indicating potential for future growth despite recent share price underperformance [2][16]. Financial Performance - Q4 2025 adjusted net income was $14.31 per share, surpassing the Zacks Consensus Estimate by 45.7% and increasing 86.6% year over year [2]. - Operating revenues reached $17.3 billion, a 3.4% year-over-year growth, although it fell short of consensus estimates by 1.4% [2]. - Property and casualty insurance premiums rose 6.3% year over year to $15.5 billion, contributing to the overall revenue growth [4][7]. - Net investment income increased by 7.1% year over year to $892 million, exceeding estimates [4]. - Total costs and expenses decreased by 11.6% year over year to $12.4 billion, driven by lower claims and operating costs [5]. Segment Performance - The Property-Liability segment earned premiums of $14.8 billion, a 6.1% increase year over year, although it missed estimates [7]. - Underwriting income in the Property-Liability segment more than doubled to $4 billion, with an improved combined ratio of 76.6% [7]. - The Protection Services segment's revenues grew 3.1% year over year to $917 million, but also fell short of estimates [8]. Financial Position - As of December 31, 2025, Allstate had total assets of $119.8 billion, a 7.3% increase from the previous year, and total equity climbed 43.2% to $30.6 billion [9]. - The company reported a cash balance of $678 million, down 3.7% from the end of 2024 [9]. - Book value per common share increased by 49.9% year over year to $108.45 [10]. Capital Deployment - In 2025, Allstate returned over $2.2 billion to shareholders through share buybacks and dividends [11]. - A new share repurchase program of $4 billion has been authorized, set to begin after the current program concludes [11]. - A quarterly dividend increase of 8% was approved, raising the dividend to $1.08 per share [12]. Overall Outlook - Estimates for Allstate have been trending upward, with a Zacks Rank of 1 (Strong Buy), suggesting expectations for above-average returns in the coming months [16].

Core Insights - The Allstate Corporation (ALL) is a large-cap insurance company with a market capitalization of $55.6 billion, providing a range of insurance products including property and casualty, life insurance, and annuities [1][2] Company Performance - ALL's stock has experienced a 2.4% decline from its 52-week high of $216.75, reached on February 5, while gaining 4.6% over the past three months, outperforming the Financial Select Sector SPDR Fund (XLF), which saw a 4.6% loss during the same period [3] - Year-to-date, ALL shares rose by 1.7% and increased by 6% over the past 52 weeks, contrasting with XLF's year-to-date decline of 6.5% and 2% returns over the last year [6] - Following the Q4 results announcement, ALL shares closed up by 2.7%, with an adjusted EPS of $14.31 surpassing Wall Street expectations of $9.82, and revenue of $17.3 billion reflecting a 5.1% year-over-year increase [7] Analyst Sentiment - Wall Street analysts maintain a "Moderate Buy" consensus rating for ALL, with a mean price target of $242.64, indicating a potential upside of 14.7% from current price levels [8]

Group 1: Stock Performance - Allstate's stock closed at $211.62, down 1.2%, which was less than the S&P 500's daily loss of 0.57% [1] - Over the past month, Allstate's stock has increased by 3.41%, outperforming the Finance sector's loss of 2.87% and the S&P 500's loss of 0.15% [1] Group 2: Earnings Estimates - The upcoming earnings report for Allstate is expected to show an EPS of $7.12, representing a 101.7% increase compared to the same quarter last year [2] - Revenue is anticipated to be $17.79 billion, reflecting a 5.86% increase from the prior-year quarter [2] Group 3: Fiscal Year Projections - For the entire fiscal year, earnings are projected at $25.32 per share, indicating a decrease of 27.3% from the previous year [3] - Revenue for the fiscal year is estimated at $72.85 billion, showing an increase of 7.36% from the prior year [3] Group 4: Analyst Estimates and Ratings - Recent changes in analyst estimates for Allstate suggest a positive outlook on the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Allstate as 1 (Strong Buy), with a 4.64% increase in the consensus EPS estimate over the last 30 days [6] Group 5: Valuation Metrics - Allstate's Forward P/E ratio is 8.46, which is lower than the industry average Forward P/E of 10.64, indicating a valuation discount [6] - The company has a PEG ratio of 0.44, significantly lower than the industry average PEG ratio of 2.16 [7] Group 6: Industry Context - The Insurance - Property and Casualty industry, to which Allstate belongs, ranks in the top 16% of all industries according to the Zacks Industry Rank [8] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a favorable environment for Allstate [8]

Upgrades - RBC Capital upgraded Builders FirstSource (BLDR) to Outperform from Sector Perform with an unchanged price target of $119, citing an attractive risk/reward due to the stock's valuation pullback [2] - Goldman Sachs upgraded AIG (AIG) to Buy from Neutral with a price target of $90, up from $83, indicating a 16% total return potential and highlighting peer-high earnings growth and improving return on equity [3] - Evercore ISI upgraded Southern Company (SO) to Outperform from In Line with a price target of $111, up from $103, expressing a bullish outlook and belief that shares are poised for all-time highs [4] - Benchmark upgraded Penn Entertainment (PENN) to Buy from Hold with a price target of $21, noting that reaching break-even and meaningful free cash flow expansion can significantly improve the company's profile [4] - Scotiabank upgraded MongoDB (MDB) to Outperform from Sector Perform with a price target of $310, up from $275, suggesting that the current reset level presents an attractive buying opportunity [5] Downgrades - Arete downgraded Meta Platforms (META) to Neutral from Buy with a price target of $676, down from $732, due to concerns over lagging AI monetization and increasing investments leading to margin declines [6] - Rothschild & Co Redburn downgraded American Airlines (AAL) to Neutral from Buy with a price target of $12.50, citing accelerating domestic airline capacity growth and disruptive pressures from the Iran conflict [6] - Wedbush downgraded StubHub (STUB) to Neutral from Outperform with a price target of $10, down from $18, following a Q4 report that raised concerns about the value of StubHub's direct issuance business [6] - Craig-Hallum downgraded Grocery Outlet (GO) to Hold from Buy with a price target of $7.50, down from $21, after disappointing Q4 results and lower-than-expected 2026 guidance [6] - Goldman Sachs downgraded Allstate (ALL) to Neutral from Buy with a price target of $231, down from $238, expressing concerns about market positioning and exposure to autonomous vehicles [6]

Core Viewpoint - Allstate is facing a privacy lawsuit for allegedly tracking drivers through their cellphones without consent, using the data to adjust premiums or deny coverage, and selling the data to other insurers [1][5]. Group 1: Legal Proceedings - A US District Judge allowed drivers in a proposed class action to attempt to prove that Allstate violated the Federal Wiretap Act by monitoring various driving metrics and attempting to monetize that data [2][8]. - The lawsuit includes claims that Allstate's data analytics unit, Arity, violated the Fair Credit Reporting Act by inaccurately reporting driving behavior, including instances when individuals were passengers [3][5]. - The litigation consolidates 15 private lawsuits against Allstate, with Texas filing a similar lawsuit in January 2025 [7]. Group 2: Technology and Data Usage - Allstate, along with other insurers like Progressive and Geico, utilizes telematics to monitor driver habits, claiming it rewards good driving with lower premiums [6]. - The tracking software from Arity is integrated into various apps, including Fuel Rewards, GasBuddy, Life360, and Allstate-owned Routely [5]. Group 3: Company Defense - Allstate contends that drivers have not proven that their data was actually captured or that their insurance rates increased as a result [6]. - The company asserts that its privacy policies disclosed the potential for data collection [6].

Core Viewpoint - Allstate is facing a privacy lawsuit for allegedly tracking drivers through their cellphones without consent, using the data to adjust premiums and sell to other insurers [1] Group 1: Legal Proceedings - A U.S. District Judge allowed a class action lawsuit to proceed, claiming Allstate violated the Federal Wiretap Act by monitoring various driving behaviors [1] - The lawsuit includes allegations that Allstate's data analytics unit, Arity, violated the Fair Credit Reporting Act by inaccurately reporting driving behavior [1] - The litigation consolidates 15 private lawsuits against Allstate, with a similar lawsuit filed by Texas in January 2025 [1] Group 2: Data Tracking and Usage - Allstate is accused of using telematics to monitor driving habits, including travel locations, trip distances, speed, acceleration, braking, and phone usage [1] - The tracking software from Arity is integrated into various apps, such as Fuel Rewards, GasBuddy, Life360, and Allstate-owned Routely [1] - Insurers like Allstate claim that telematics technology rewards good driving with lower premiums [1] Group 3: Company Response - Allstate contends that the plaintiffs did not prove that their data was captured or that insurance rates increased as a result [1] - The company argues that its privacy policies disclosed the potential for data collection [1] - There was no immediate response from Allstate or its legal team regarding the lawsuit [1]