Allstate’s Positive Growth Continues Amid Catastrophe Losses
Northbrook, Illinois-based The Allstate Corporation (ALL) is a major provider of property and casualty, and other insurance products in the United States and Canada. With a market cap of $53.9 billion, Allstate operates across several segments, including Allstate Protection, Protection Services, Health and Benefits, Run-off Property-Liability, and Corporate and Other.
Typically, companies with valuations of $10 billion or more are labeled “large-cap stocks,” and Allstate fits comfortably into this category. As the fourth largest property and casualty insurer and the second largest home insurance company in the U.S., its market valuation is expected to be substantial.
On November 27, Allstate reached an all-time high of $209.88, but the stock is currently trading 5.2% lower than this peak. Over the last three months, Allstate has seen a 6.3% gain, though this is less robust than the 10.6% increase experienced by the Financial Select Sector SPDR Fund (XLF) during the same period.
However, looking back over a longer term paints a different picture of Allstate’s performance. The stock has surged 42.2% year-to-date and 42.9% over the past 52 weeks, outpacing XLF’s 32.2% gains in 2024 and 37.6% over the last year.
Supporting this positive trend, Allstate’s stock has mostly traded above its 200-day moving average for the past year and has remained above its 50-day moving average since mid-July, with only minor fluctuations.
Focusing on short-term gains while also pursuing long-term strategies, Allstate has shown strong financial performance. A notable contributor to its recent success was the auto insurance profit improvement plan, which helped achieve $486 million in underwriting income from auto insurance last quarter.
Despite these gains, ALL stock fell 1.5% in the session following the release of its Q3 earnings on October 30. The company’s catastrophe losses jumped 44.2% year-over-year to $1.7 billion, largely due to hurricanes Beryl, Debby, Francine, and Helene. Even so, Allstate’s financial results were striking, with a year-over-year growth of 14.7% in consolidated revenues, totaling $16.6 billion. Moreover, its adjusted EPS stood at $3.91, surpassing Wall Street’s expectations by an impressive 77.7%.
In comparison to its competitor, Chubb Limited (CB), Allstate has also outperformed, as Chubb saw 22.7% gains on a year-to-date basis and 24.4% returns over the last year.
Among the 20 analysts who cover ALL stock, the consensus recommendation is a “Moderate Buy.” The average price target of $222.33 suggests an 11.7% upside from current trading levels.
On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
