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 forward dividend yield is 1.71%, higher than the industry (0.57%) and sector (1.53%) forward dividend yields.
5. ALL PEG ratio (P/E adjusted for growth) is 0.85, and it’s low compared to its industry peers’ PEG ratios.
6. ALL average analyst rating is Buy.
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 stock price ($90.52) is close to the 52-week high ($94.70). Perhaps now is a good time to sell?
5. ALL profitability is declining. The YoY profit margin change was -0.94pp.
What are your thoughts on ALL?
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