Core Viewpoint - Allstate's stock has shown strong performance, increasing 6% over the past month and reaching a new 52-week high of $203.54, with a year-to-date gain of 45.4% compared to the Zacks Finance sector's 24.5% and the Zacks Insurance - Property and Casualty industry's 31.8% [1] Financial Performance - Allstate reported EPS of $3.91 in its last earnings report, significantly exceeding the consensus estimate of $2.2, and beat the consensus revenue estimate by 0.88% [2] - For the current fiscal year, Allstate is projected to achieve earnings of $16.07 per share on revenues of $64.32 billion, reflecting a 1591.58% increase in EPS and a 12.06% increase in revenues [3] - The next fiscal year is expected to see earnings of $19.14 per share on revenues of $68.87 billion, indicating year-over-year changes of 19.07% and 7.08%, respectively [3] Valuation Metrics - Allstate's current trading metrics include a P/E ratio of 12.7X for the current fiscal year EPS estimates, below the peer industry average of 14.2X, and a trailing cash flow basis P/E of 49.2X compared to the peer group's average of 13.6X [7] - The stock has a PEG ratio of 1.81, which does not place it among the top echelon of stocks from a value perspective [7] Zacks Rank - Allstate holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - The company meets the criteria for selection based on Zacks Rank and Style Scores, indicating potential for further gains [9] Industry Comparison - The Insurance - Property and Casualty industry is performing well, ranking in the top 14% of all industries, suggesting positive tailwinds for both Allstate and its peer, Axis Capital Holdings Limited [12] - Axis Capital Holdings Limited has also shown strong performance, with a Zacks Rank of 2 (Buy) and expected earnings of $11.65 per share on revenues of $6.14 billion for the current fiscal year [10][11]

Shares of The Allstate Corporation (ALL) have rallied 41% over the year-to-date period to close at $197.29 on Wednesday. The significant gains have pushed the stock’s price closer to the upper end of its 52-week range of $134.17-$201. It outperformed its peers like MetLife, Inc. (MET) and American International Group, Inc. (AIG) , the overall industry, and the S&P 500 Index during this time.YTD Price Performance Comparison Image Source: Zacks Investment ResearchALL’s Earnings Estimates & ValuationThe Zacks ...

Group 1 - The Allstate Corporation (ALL) is experiencing significant activity in the options market, particularly with the Dec. 20, 2024 $60 Put showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Allstate currently holds a Zacks Rank 2 (Buy) in the Insurance - Property and Casualty industry, which is in the top 12% of the Zacks Industry Rank, with analysts increasing earnings estimates from $5.23 to $5.60 per share over the last 60 days [3] Group 2 - The high implied volatility for Allstate may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as expected by expiration [4]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Allstate (ALL) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][4][7]. Company Analysis - Allstate (ALL) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock is currently trading at a P/E ratio of 10.87, significantly lower than the industry average of 28.91, suggesting it may be undervalued [4]. - Over the past 52 weeks, ALL's Forward P/E has fluctuated between a high of 12.72 and a low of -83.58, with a median of 11.20 [4]. - The PEG ratio for ALL is 1.55, which is lower than the industry average of 2.90, indicating a favorable growth outlook relative to its valuation [5]. - ALL's PEG has ranged from a high of 1.82 to a low of -11.94 over the last 12 months, with a median of 1.53 [5]. - The P/S ratio for ALL is 0.83, compared to the industry average of 1.19, further supporting the notion that the stock is undervalued [6]. - These metrics collectively suggest that ALL is likely undervalued and presents an impressive value opportunity at the moment [7].

The Allstate Corporation’s (ALL) Allstate Health Solutions, a division of ALL, recently teamed up with Intuit QuickBooks, Thatch, and Ambetter Health to make healthcare coverage more flexible. This collaboration introduces Individual Coverage Health Reimbursement Arrangements, offering businesses an innovative way to reimburse employees for individual health plans, tax-free.This move bodes well for Allstate Health Solutions as it will leverage QuickBooks’ payroll subscription services, an efficient platform ...

The Zacks Property and Casualty Insurance (P&C) industry is likely to benefit from better pricing, prudent underwriting and exposure growth. Industry players like The Progressive Corporation (PGR) , Chubb Limited (CB) , The Travelers Companies (TRV) , The Allstate Corporation (ALL) and Cincinnati Financial Corporation (CINF) are poised to grow despite a rise in catastrophic activities. Given an active catastrophe environment, the policy renewal rate should accelerate. Also, the increasing adoption of techno ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about Allstate (ALL) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Allstate currently has an average ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium also includes the Zacks Style Scores.What are the Zacks Style Scores?The Zacks Styl ...

The Allstate Corporation (ALL) reported third-quarter 2024 adjusted net income of $3.91 per share, which outpaced the Zacks Consensus Estimate by a whopping 77.7%. The bottom line increased nearly five-fold year over year.Operating revenues advanced 12.3% year over year to $16.4 billion on the back of higher earned premiums from Property-Liability unit. The top line beat the consensus mark by 0.9%.The quarterly results benefited from strong growth in earned premiums, improved underwriting income and robust ...

Financial Data and Key Metrics Changes - Total revenues for Q3 2024 reached $16.6 billion, an increase of 14.7% compared to the same quarter last year [7][11] - Net income was reported at $1.2 billion, with adjusted net income of $3.91 per share, and a return on equity of 26.1% over the last 12 months [7][12] Business Line Data and Key Metrics Changes - Property-Liability earned premiums increased by 11.6% to $13.7 billion, driven by higher average premiums [16] - Underwriting income improved significantly to $495 million, up $909 million from the prior year quarter [16] - The homeowners insurance segment saw a 10.8% increase in written premiums, with a combined ratio of 98.2, resulting in $60 million of underwriting income [24][25] Market Data and Key Metrics Changes - The overall policies in force declined by 1.5%, with customer retention at 84.7%, slightly below the prior year [27] - New issued applications increased by 26%, helping to offset retention losses [27] Company Strategy and Development Direction - The company aims to increase its market share in personal Property-Liability and expand customer protection offerings [6] - A focus on building a low-cost digital insurer is part of the transformative growth initiatives [9] - The acquisition of National General has been successful, doubling its size and enhancing competitive positioning [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving retention and new business levels, with expectations of less aggressive rate increases in the future [56][57] - The competitive landscape includes aggressive advertising from major players, but there are opportunities due to smaller competitors lacking resources [55] Other Important Information - The company is in the process of selling its Employer Voluntary Benefits business for $2 billion, expected to close in the first half of 2025 [48][49] - The Protection Plans business reported revenues of $512 million, a 23.1% increase year-over-year, driven by growth in international markets [46] Q&A Session Summary Question: Confidence in auto business PIF growth and competitor behavior - Management refrained from providing specific growth projections but emphasized the strategy to grow market share and improve retention [54][56] Question: Impact of agent compensation changes on retention - Retention in the agency channel is up year-over-year, with price increases being the primary factor affecting overall retention [72] Question: Homeowners business growth despite rate increases - The homeowners segment is performing well due to effective underwriting and bundling strategies, with growth opportunities identified in less competitive markets [75][81] Question: Renewal ratios and impact of new business on retention - New business tends to have lower renewal rates initially, but current volumes are not significant enough to impact overall retention meaningfully [90] Question: Combined ratio and growth strategy in auto insurance - Management believes the auto profit improvement plan has been successful, allowing for increased advertising and growth investments [99] Question: Geographic opportunities for homeowners insurance growth - The company is focusing on growth in the middle part of the country, avoiding states like Florida and California where the market is challenging [104][105]