3 Reasons Why Allstate (ALL) Is a Great Growth Stock

Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks is challenging due to inherent risks and volatility [1] Group 1: Company Overview - Allstate (ALL) is currently recommended as a strong growth stock by the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] - Allstate holds a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [2] Group 2: Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth being highly desirable [3] - Allstate's historical EPS growth rate is 5.2%, but projected EPS growth for this year is 51.2%, significantly surpassing the industry average of 16.1% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth investing [5] - Allstate's S/TA ratio is 0.58, indicating that the company generates $0.58 in sales for every dollar in assets, compared to the industry average of 0.33, showcasing higher efficiency [5] Group 4: Sales Growth - Sales growth is another critical factor, with Allstate expected to achieve a sales growth of 7.2% this year, outpacing the industry average of 4.1% [6] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions are correlated with stock price movements, and Allstate has seen upward revisions in its current-year earnings estimates [7] - The Zacks Consensus Estimate for Allstate's current year has increased by 15.8% over the past month, indicating positive momentum [7] Group 6: Conclusion - Allstate's combination of a Zacks Rank 1 and a Growth Score of B suggests it is a potential outperformer and a solid choice for growth investors [9]