Allstate Stock Underperforms Amid Q2 Beat: Analysts Maintain 'Moderate Buy' Rating

Allstate's stock has gained 16.1% over the past 52 weeks and 7.3% YTD, underperforming the S&P 500 Index. The insurance giant has a market cap of $54.5 billion and operates through various segments. Analysts expect a 13.8% year-over-year growth in adjusted EPS for fiscal 2025, with a consensus "Moderate Buy" rating and a mean price target of $230.95, indicating an 11.7% upside potential.

Allstate Corporation (ALL), a Northbrook, Illinois-based insurance giant, has shown mixed performance in recent quarters. Over the past 52 weeks, Allstate's stock has gained 16.1%, underperforming the S&P 500 Index's 16.4% gain. Year-to-date (YTD), the stock has risen by 7.3%, compared to the S&P 500's 9.7% return [2].

With a market cap of $54.5 billion, Allstate operates through various segments including Allstate Protection, Protection Services, Health and Benefits, Run-off Property-Liability, and Corporate and Other. Despite the mixed performance, analysts remain optimistic about the company's prospects. For fiscal 2025, ending in December, analysts expect a 13.8% year-over-year growth in adjusted EPS, with a consensus "Moderate Buy" rating [2].

The company's stock has seen a significant boost following the release of its impressive Q2 results on July 30. Allstate reported solid 7.5% year-over-year growth in premiums earned, reaching $14.3 billion. The company also reported a notable improvement in net investment income, with its overall topline for the quarter coming in at $16.6 billion, up 5.8% year-over-year. Profits soared, with non-GAAP adjusted net income for the quarter surging 270.9% year-over-year to $1.6 billion, and adjusted EPS for the quarter coming in at $5.94, beating the consensus estimates by 78.9% [2].

The stock maintains a mean price target of $230.95, indicating an 11.7% upside potential. The street-high target of $275 represents a 33% premium to current price levels. On August 11, Jefferies analyst Andrew Andersen maintained a "Buy" rating on Allstate and raised the price target from $254 to $255 [2].

References:
[1] https://www.morningstar.com/stocks/xnys/all/quote
[2] https://www.barchart.com/story/news/34214083/do-wall-street-analysts-like-the-allstate-stock