Allstate (ALL): Stock With Unusual Social Activity

Trade-Ideas LLC identified Allstate (ALL) as an unusual social activity candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Allstate

(

ALL

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Allstate as such a stock due to the following factors:

  • ALL has 13x the normal benchmarked social activity for this time of the day compared to its average of 2.58 mentions/day.
  • ALL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $227.9 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on ALL:

The Allstate Corporation, through its subsidiaries, engages in the property-liability insurance and life insurance businesses in the United States and Canada. The stock currently has a dividend yield of 1.9%. ALL has a PE ratio of 1. Currently there are 12 analysts that rate Allstate a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Allstate has been 3.3 million shares per day over the past 30 days. Allstate has a market cap of $24.8 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.28 and a short float of 1.2% with 1.37 days to cover. Shares are down 12% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Allstate as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 13.1%. Since the same quarter one year prior, revenues slightly increased by 2.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Although ALL's debt-to-equity ratio of 0.24 is very low, it is currently higher than that of the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, ALLSTATE CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • ALLSTATE CORP's earnings per share declined by 43.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ALLSTATE CORP increased its bottom line by earning $6.29 versus $4.81 in the prior year. For the next year, the market is expecting a contraction of 22.3% in earnings ($4.89 versus $6.29).
  • In its most recent trading session, ALL has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

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