NEW YORK (
-- Allstate Corporation
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels.
- ALL's revenue growth trails the industry average of 19.8%. Since the same quarter one year prior, revenues slightly increased by 3.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 332.5% when compared to the same quarter one year prior, rising from $120.00 million to $519.00 million.
- ALLSTATE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ALLSTATE CORP increased its bottom line by earning $1.72 versus $1.58 in the prior year. This year, the market expects an improvement in earnings ($3.30 versus $1.72).
The Allstate Corporation, through its subsidiaries, engages in the personal property and casualty insurance business, as well as in the life insurance, retirement, and investment products business in the United States and Canada. The company has a P/E ratio of 18.6, equal to the average insurance industry P/E ratio and above the S&P 500 P/E ratio of 16.9. Allstate has a market cap of $16.7 billion and is part of the
industry. Shares are up 0.2% year to date as of the close of trading on Wednesday.
You can view the full
or get investment ideas from our