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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.
