Northbrook, Illinois-based The Allstate Corporation (ALL) provides property and casualty, and other insurance products in the United States and Canada. With a market cap of $53.9 billion, Allstate operates through Allstate Protection, Protection Services, Health and Benefits, Run-off Property-Liability, and Corporate and Other segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Allstate fits right into that category. Given Allstate is the fourth largest P&C insurer and the second largest home insurance company in the U.S., its valuation above this mark is not surprising.
Allstate recently touched its all-time high of $209.88 on Nov. 27 and is currently trading 5.2% below that peak. Despite gaining 6.3% over the past three months, Allstate has lagged behind the Financial Select Sector SPDR Fund’s (XLF) 10.6% surge during the same time frame.
However, when compared on a longer-term basis, Allstate’s performance looks much more impressive. ALL stock prices soared 42.2% on a YTD basis and 42.9% over the past 52 weeks, outperforming XLF’s 32.2% gains in 2024 and 37.6% returns over the past year.
To confirm the bullish trend, Allstate’s stock has consistently traded above its 200-day moving average over the past year and mostly above its 50-day moving average since mid-July with minor fluctuations.
Allstate has continued to focus on near-term performance while implementing its long-term growth plans which has resulted in strong financial performance in the past quarters. The auto insurance profit improvement plan is one such plan that has resulted in $486 million in auto insurance underwriting income during the last quarter.
However, ALL stock dipped 1.5% in the trading session after the release of its Q3 earnings on Oct. 30 as the company’s catastrophe losses increased by a concerning 44.2% compared to the year-ago quarter to $1.7 billion, primarily due to the impact of hurricanes Beryl, Debby, Francine and Helene. Nevertheless, Allstate’s overall performance has remained more than impressive. The company reported a staggering 14.7% year-over-year growth in consolidated revenues to $16.6 billion. Meanwhile, its adjusted EPS of $3.91, exceeded Wall Street’s expectations by an enormous 77.7%.
Allstate has also outperformed its competitor Chubb Limited’s (CB) 22.7% gains on a YTD basis and 24.4% returns over the past year.
Among the 20 analysts covering the ALL stock, the consensus rating is a “Moderate Buy.” The mean price target of $222.33 represents an 11.7% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- 3 Stocks With Crypto Upside That Aren't MicroStrategy
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