Trade-Ideas: Allstate (ALL) Is Today's Post-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Allstate ( ALL) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Allstate as such a stock due to the following factors:

  • ALL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $165.5 million.
  • ALL is up 2.2% today from today's close.

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More details on ALL:

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. The stock currently has a dividend yield of 2%. ALL has a PE ratio of 10.1. Currently there are 10 analysts that rate Allstate a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Allstate has been 2.3 million shares per day over the past 30 days. Allstate has a market cap of $22.7 billion and is part of the financial sector and insurance industry. Shares are down 8.5% year-to-date as of the close of trading on Tuesday.

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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, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these 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 8.9%. Since the same quarter one year prior, revenues slightly increased by 4.1%. 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 0.30 is very low, it is currently higher than that of the industry average.
  • Net operating cash flow has significantly increased by 78.31% to $1,505.00 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 -27.66%.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

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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