The Allstate Corporation's ALL shares have advanced 29.1% in the past six months compared with the industry’s 5.3% growth. The Zacks Finance sector and the S&P 500 Composite Index rose 9.6% and 7%, respectively, in the same time frame. With a market capitalization of $37.6 billion, the average volume of shares traded in the last three months was 1.6 million. Rate hikes, the buyout of National General, an improved expense ratio in the Property-Liability unit, a well-performing Protection Services business and a solid financial position continue to drive Allstate’s performance. The property and casualty (P&C) insurer, currently carrying a Zacks Rank #3 (Hold), has a sound surprise history of beating on earnings in three of the trailing four quarters and missing the mark once, delivering an average surprise of 31.50%. Can ALL Retain the Momentum? The Zacks Consensus Estimate for Allstate’s 2024 earnings is pegged at $12.38 per share. The consensus mark for 2023 earnings is pinned at a loss of $1.89 per share. The consensus estimate for 2024 revenues is pegged at $61.8 billion, implying 7.6% growth from the 2023 estimate. The company's earnings witnessed three upward estimate revisions for 2024 in the past 60 days against two in the opposite direction. The top line of Allstate continues to benefit on the back of continually rising P&C insurance premiums and a diversified product suite. P&C insurance premiums improved 10.2% year over year in the first nine months of 2023. Continued rate increases are implemented to counter inflationary headwinds on loss costs, thereby acting as a roadblock to the profits of ALL’s auto insurance business. Allstate pursues acquisitions to enhance capabilities and expand its nationwide presence. The acquisition of National General in 2021 continues to reap benefits for the premiums of the Property-Liability segment and the trend is expected to sustain in the days ahead. Strong contribution from the Protection Services unit of ALL results from a growing product suite and international growth in Allstate Protection Plans. The insurer undertakes technology investments to solidify its position as a cost-effective digital insurer. Cost-cutting initiatives bring about improvement in underwriting results and the expense ratio of the Property-Liability unit. In the first nine months of 2023, the expense ratio improved 230 basis points year over year to 20.9%. Allstate divests underperforming businesses and thereby, redirects capital to boost presence in the personal property-liability market and expand protection solutions. A solid financial stand remains an added advantage for Allstate, substantiated by its growing cash reserves and adequate cash-generating abilities. Cash balance advanced 16.8% from the 2022-end level as of Sep 30, 2023. The financial strength imparts ALL to return capital to shareholders. In February 2023, management approved a 4.7% increase in the quarterly dividend. Allstate boasts an impressive VGM Score of A. VGM Score helps identify stocks with the most attractive value, the best growth and the most promising momentum. Original Story can be found: Allstate (ALL) Up 29% in 6 Months: What's Ahead for Investors? (yahoo.com) If you are a current Allstate customer and concerned about the rising prices we can help. By clicking the button below, our team can review your current policy and shop for one that better serves your needs. Plus, as a locally owned and operated business, we take pride in offering competitive rates and personalized service that you won't find with larger corporations. When you choose us, you're not just a policyholder - you're part of our community.
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