Allstate (ALL) Stock Sinks As Market Gains: What You Should Know
Zacks Investment Research | Oct 15, 2019 05:50AM ET
Allstate (ALL) closed at $108.07 in the latest trading session, marking a -0.15% move from the prior day. This change lagged the S&P 500's 1% gain on the day.
Heading into today, shares of the insurer had gained 1.74% over the past month, outpacing the Finance sector's loss of 1.6% and the S&P 500's loss of 1.22% in that time.
ALL will be looking to display strength as it nears its next earnings release, which is expected to be October 29, 2019. The company is expected to report EPS of $2.23, up 15.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.07 billion, down 11.88% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.66 per share and revenue of $36.18 billion. These totals would mark changes of +19.7% and -11.09%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ALL. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 1.35% higher within the past month. ALL is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, ALL currently has a Forward P/E ratio of 11.2. For comparison, its industry has an average Forward P/E of 14.52, which means ALL is trading at a discount to the group.
Also, we should mention that ALL has a PEG ratio of 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ALL's industry had an average PEG ratio of 1.55 as of yesterday's close.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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