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Based in Northbrook, Illinois, The Allstate Corporation (ALL) is a leading provider of property-casualty and life insurance products in the U.S. and Canada. With a market cap of $42.2 billion, it offers a wide range of insurance and investment solutions through various distribution channels, including agents, contact centers, and online platforms.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Allstate fits this criterion perfectly. Allstate is distinguished in the market for its holistic insurance solutions, leveraging a nationwide network of small business advisors, cutting-edge technology like telematics, and strong financial returns to shareholders.
However, the insurance company has faced a 9.7% decline from its 52-week high of $177.37, reached in May. Shares of Allstate have dropped 7.4% over the past three months, lagging behind the broader Nasdaq Composite's ($NASX) 9.4% gain during the same period.
Longer term, ALL stock has risen 14.5% on a YTD basis, which lags behind NASX's nearly 19.4% increase over the same period. Meanwhile, ALL has surged 47.2% over the past 52 weeks, surpassing the NASX's 31.9% gains.
ALL has been trading above its 200-day moving average since October last year but has remained below its 50-day moving average since mid-May this year.
Allstate's outperformance over the past year stems from strong operational results and strategic initiatives, including a potential sale of its health and benefits business and favorable market valuation. Moreover, the stock rose marginally after its Q1 earnings result on May 1 due to a stronger-than-expected profit driven by higher premiums, increased investment income, and reduced catastrophe losses.
Also, rival American Financial Group, Inc. (AFG) is underperforming ALL. AFG shares have gained 7.7% over the past 52 weeks and 5.4% on a YTD basis, highlighting ALL's relative strength in comparison.
Despite the recent underperformance, analysts remain cautiously optimistic about the stock's prospects, considering its strong price action over the past year. Among the 19 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and the mean price target of $187.35 is a premium of 17.1% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of 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.
