Allstate Corporation (The) (ALL) Buy or Sell Stock Guide
The analysis below may be helpful to you if you have any of the following questions about ALL stock:
- Is ALL a buy or a sell?
- Should I sell or hold ALL stock today?
- Is ALL a good buy / a good investment?
- What are ALL analyst opinions, recommendations, ratings?
Here are ALL stock buy reasons/signals:
1. Allstate's network of captive agents helps keep policies in-house. Customers who insure their home, cars, and leisure craft aren't likely to switch to a competitor to save a couple of bucks on one policy.
2. To address recent subpar returns, the company has been increasing prices on many of its policies, which has led to improved underlying profitability (excluding catastrophes).
3. Allstate has shortened the duration of its investment portfolio, which reduces its exposure to higher interest rates.
4. ALL profitability is improving. The YoY profit margin change was 3.16pp.
5. ALL forward dividend yield is 1.93%, higher than the industry (1.15%) and sector (1.12%) forward dividend yields.
6. ALL forward P/E ratio is 9.84, and it’s low compared to its industry peers’ P/E ratios.
7. ALL Price/Sales ratio is 0.80, and it’s low compared to its industry peers’ P/S ratios.
8. ALL average analyst rating is Buy.
9. ALL average analyst price target ($106.71) is above its current price ($93.80).
Here are ALL stock sell reasons/signals:
1. A spike in frequency of claims has dinged profitability in auto lines, and it will take time for pricing actions to reverse this trend.
2. Despite reducing its exposure to some coastal areas, Allstate may experience large loss years caused by Midwestern catastrophes.
3. Allstate's direct-to-consumer channel is not as developed as some competitors'. Progressive and Geico have proven experience in this increasingly popular distribution method, and Allstate's Esurance operations are much less profitable.
4. ALL quarterly revenue growth was 2.90%, lower than the industry and sector average revenue growth (4.06% and 6.38%, respectively).
5. ALL short interest (days to cover the shorts) ratio is 3.35. The stock garners more short interest than the average industry, sector or S&P 500 stock.
What are your thoughts on ALL?
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