The Allstate Corporation (ALL) Hits Fresh High: Is There Still Room to Run?

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]