Allstate Corp Stock Buy Recommendation Reiterated (ALL)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- Allstate (NYSE: ALL) has been reiterated by TheStreet Ratings as a buy with a ratings score of A- . The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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Highlights from the ratings report include:
  • Compared to its closing price of one year ago, ALL's share price has jumped by 46.10%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ALL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ALL's revenue growth trails the industry average of 21.6%. Since the same quarter one year prior, revenues slightly increased by 4.2%. 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.
  • ALL's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Net operating cash flow has significantly increased by 68.99% to $436.00 million when compared to the same quarter last year. In addition, ALLSTATE CORP has also vastly surpassed the industry average cash flow growth rate of 10.87%.

The Allstate Corporation, through its subsidiaries, engages in the personal property and casualty insurance, life insurance, and retirement and investment products business primarily in the United States. Allstate has a market cap of $21.71 billion and is part of the financial sector and insurance industry. The company has a P/E ratio of 10.3, below the S&P 500 P/E ratio of 17.7. Shares are up 12.2% year to date as of the close of trading on Friday.

You can view the full Allstate Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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