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

In the latest close session, Allstate (ALL) was down 1.2% at $211.62. The stock's change was less than the S&P 500's daily loss of 0.57%. At the same time, the Dow lost 1.61%, and the tech-heavy Nasdaq lost 0.26%.

The insurer's stock has climbed by 3.41% in the past month, exceeding the Finance sector's loss of 2.87% and the S&P 500's loss of 0.15%.

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 $7.12, marking a 101.7% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $17.79 billion, up 5.86% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $25.32 per share and a revenue of $72.85 billion, indicating changes of -27.3% and +7.36%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Allstate. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.64% higher. Currently, Allstate is carrying a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Allstate is currently trading at a Forward P/E ratio of 8.46. This denotes a discount relative to the industry average Forward P/E of 10.64.

We can additionally observe that ALL currently boasts a PEG ratio of 0.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Insurance - Property and Casualty industry had an average PEG ratio of 2.16.

The Insurance - Property and Casualty industry is part of the Finance sector. With its current Zacks Industry Rank of 38, this industry ranks in the top 16% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.