Allstate Corp Stock Upgraded (ALL)
NEW YORK (
)
-- Allstate
(NYSE:
) has been upgraded by TheStreet Ratings from hold to 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, attractive valuation levels, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- ALL's revenue growth has slightly outpaced the industry average of 7.0%. Since the same quarter one year prior, revenues slightly increased by 2.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 144.6% when compared to the same quarter one year prior, rising from $296.00 million to $724.00 million.
- ALLSTATE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ALLSTATE CORP reported lower earnings of $1.53 versus $1.72 in the prior year. This year, the market expects an improvement in earnings ($3.73 versus $1.53).
The Allstate Corporation, through its subsidiaries, engages in the personal property and casualty insurance, life insurance, retirement, and investment products businesses primarily in the United States. The company has a P/E ratio of 43.1, below the average insurance industry P/E ratio of 45.2 and above the S&P 500 P/E ratio of 17.7. Allstate has a market cap of $14.84 billion and is part of the
sector and
industry. Shares are up 6.9% year to date as of the close of trading on Thursday.
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