NEW YORK (TheStreet) -- Shares of Allstate Corp (ALL) are declining, down 0.23% to $66.43 in early market trading Monday, after holding company had its rating lowered to "market perform" from "outperform" by analysts at Keefe, Bruyette & Woods this morning.
Analysts at the firm maintained its price target of $70 on shares.
Northbrook, IL-based Allstate is engaged in property-liability insurance, life insurance, retirement and investment product business, and operated in the U.S. and Canada through its subsidiaries.
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The company sells private passenger automobile and homeowners insurance through independent and specialized brokers, and also sells life insurance, annuity, and group pension products through agents.
Separately, TheStreet Ratings team rates ALLSTATE CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALLSTATE CORP (ALL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
- 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 $4.81 versus $4.68 in the prior year. This year, the market expects an improvement in earnings ($5.24 versus $4.81).
- 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 147.2% when compared to the same quarter one year prior, rising from $316.00 million to $781.00 million.
- ALL's revenue growth trails the industry average of 22.6%. Since the same quarter one year prior, revenues slightly increased by 4.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although ALL's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average.
- You can view the full analysis from the report here: ALL Ratings Report