Allstate Corp (ALL): Today's Featured Insurance Laggard

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

Allstate ( ALL) pushed the Insurance industry lower today making it today's featured Insurance laggard. The industry as a whole closed the day up 0.9%. By the end of trading, Allstate fell $0.77 (-1.6%) to $47.47 on heavy volume. Throughout the day, 5,529,643 shares of Allstate exchanged hands as compared to its average daily volume of 3,293,300 shares. The stock ranged in price between $47.10-$48.37 after having opened the day at $48.24 as compared to the previous trading day's close of $48.24. Other companies within the Insurance industry that declined today were: CoreLogic ( CLGX), down 2.6%, Hanover Insurance Group ( THG), down 2.5%, MBIA ( MBI), down 2.4% and Hartford Financial Services Group ( HIG), down 2.3%.
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The Allstate Corporation, through its subsidiaries, engages in the provision of personal property and casualty insurance, life insurance, and retirement and investment products primarily in the United States. Allstate has a market cap of $22.9 billion and is part of the financial sector. The company has a P/E ratio of 10.5, below the S&P 500 P/E ratio of 17.7. Shares are up 20.1% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Allstate a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Allstate as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, American Safety Insurance Holdings ( ASI), down 20.7%, State Auto Financial Corporation ( STFC), down 6.5%, United Fire Group ( UFCS), down 6.5% and National Interstate Corporation ( NATL), down 5.8%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF ( KIE) while those bearish on the insurance industry could consider Proshares Short Financials ( SEF).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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