Allstate (ALL) Registers a Bigger Fall Than the Market: Important Facts to Note

In the latest close session, Allstate (ALL) was down 1.41% at $204.35. The stock fell short of the S&P 500, which registered a loss of 1.36% for the day. Elsewhere, the Dow saw a downswing of 1.64%, while the tech-heavy Nasdaq depreciated by 1.46%.

Prior to today's trading, shares of the insurer had lost 2.38% was narrower than the Finance sector's loss of 5.19% and lagged the S&P 500's loss of 1.76%.

The investment community will be paying close attention to the earnings performance of Allstate in its upcoming release. It is anticipated that the company will report an EPS of $7.16, marking a 102.83% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $17.72 billion, up 5.47% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $25.4 per share and revenue of $72.82 billion, which would represent changes of -27.07% and +7.32%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Allstate. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 1.59% rise in the Zacks Consensus EPS estimate. Right now, Allstate possesses a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Allstate is currently exchanging hands at a Forward P/E ratio of 8.16. This denotes a discount relative to the industry average Forward P/E of 10.14.

We can also see that ALL currently has a PEG ratio of 0.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Insurance - Property and Casualty industry held an average PEG ratio of 2.05.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 30, finds itself in the top 13% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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