Do Wall Street Analysts Like The Allstate Stock?
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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 $54.5 billion, Allstate operates through Allstate Protection, Protection Services, Health and Benefits, Run-off Property-Liability, and Corporate and Other segments.
The insurance giant has marginally underperformed the broader market over the past year. ALL stock has gained 16.1% over the past 52 weeks and 7.3% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 16.4% gains over the past year and 9.7% returns on a YTD basis.
Narrowing the focus, Allstate has also underperformed the sector-focused Financial Select Sector SPDR Fund’s (XLF) 20.7% surge over the past 52 weeks and 8.6% gains on a YTD basis.
Allstate’s stock prices shot up 5.7% in a single trading session following the release of its impressive Q2 results on Jul. 30. The company reported solid 7.5% year-over-year growth in premiums earned, reaching $14.3 billion. Further, it reported a notable improvement in net investment income, and its overall topline for the quarter came in at $16.6 billion, up 5.8% year-over-year.
Meanwhile, Allstate observed a massive growth in profits. Its non-GAAP adjusted net income for the quarter soared 270.9% year-over-year to $1.6 billion, and its adjusted EPS for the quarter came in at $5.94, beating the consensus estimates by 78.9%.
For the full fiscal 2025, ending in December, analysts expect Allstate to deliver an adjusted EPS of $20.84, up 13.8% year-over-year. Further, the company has a robust earnings surprise history. It has surpassed the Street’s bottom-line projections in each of the past four quarters by notable margins.
The stock maintains a consensus “Moderate Buy” rating overall. Of the 23 analysts covering the stock, opinions include 15 “Strong Buys,” one “Moderate Buy,” five “Holds,” and two “Strong Sells.”
This has remained mostly stable in recent months.
On Aug. 11, Jefferies analyst Andrew Andersen maintained a “Buy” rating on Allstate and raised the price target from $254 to $255.
As of writing, ALL’s mean price target of $230.95 suggests an 11.7% upside potential. Meanwhile, the street-high target of $275 represents a 33% 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.