Allstate Corporation (The) (ALL) Buy or Sell Stock Guide

Last updated: May 12, '19

Are you looking for the analysis of Allstate Corporation (The) (ALL) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 7 reasons to buy and 6 reasons to sell ALL stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also 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 / investment?
  • What are ALL analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy ALL stock:

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 forward dividend yield is 2.12%, higher than the industry (1.19%) and sector (0.91%) forward dividend yields. See ALL forward dividend chart.

5. ALL forward P/E ratio is 9.95, and it’s low compared to its industry peers’ P/E ratios. See ALL forward P/E ratio chart.

6. ALL Price/Sales ratio is 0.82, and it’s low compared to its industry peers’ P/S ratios. See ALL forward Price/Sales ratio chart.

7. ALL average analyst rating is Buy. See ALL analyst rating chart.

Now that you understand the bull case, let’s look at the reasons to sell ALL stock (i.e., the bear case):

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 stock price ($96.38) is close to the 52-week high ($99.46). Perhaps now is a good time to sell? See ALL price chart.

5. ALL quarterly revenue growth was -5.80%, lower than the industry and sector average revenue growth (4.91% and 5.69%, respectively). See ALL revenue growth chart.

6. ALL profitability is declining. The YoY profit margin change was -2.69percentage points. See ALL profitability chart.

Now let's look at the key statistics for ALL:

Metrics ALL
Price $96.17
Average Price Target / Upside $105.25 / 9.44%
Average Analyst Rating Buy
Industry Insurance - Property & Casualty
Sector Financial Services
Number of Employees 45,700
Market Cap $31.56B
Forward P/E Ratio 9.54
Price/Book Ratio 0.77
PEG 0.83
Revenue (TTM) $41.04B
YoY Quarterly Revenue Growth 12.5%
Profit Margin 6.19%

What are your thoughts on ALL?

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