Allstate good news are not so good

Today I will summarize Allstate. I will go over what exactly are Allstate shareholders getting in July. Allstate Piotroski F Score is 5 - Healthy. Considering 30-days investment horizon, Allstate is expected to generate 1.22 times more return on investment than the market. However, the company is 1.22 times more volatile than its market benchmark. It trades about 0.11 of its potential returns per unit of risk. The market is currently generating roughly -0.02 per unit of risk. What is Allstate Target Price Odds to finish over Current Price? Out from normal probability distribution, the odds of Allstate to move above current price in 30 days from now is near 1%. The The Allstate Corporation probability density function shows the probability of Allstate Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, Allstate has beta of 0.0 . This suggests the returns on S&P 500 and Allstate do not appear to be highly reactive. Additionally, it does not look like the company alpha can have any bearing on the equity current valuation.
Published over a year ago
View all stories for Allstate | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Vlad Skutelnik

ALLSTATE CP has roughly 4.71B in cash with 3.17B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 14.13. The company dividends can provide a clue to current valuation of the stock. This firm one year expected dividend income is about $0.86 per share. Earning per share calculations of the firm is based on official Zacks consensus of 7 analysts regarding Allstate future annual earnings. Given the historical accuracy of 80.33%, the future earnings per share of the company is estimated to be 8.9938 with lowest and highest values of 8.7 and 9.3 respectively. Please note that this consensus of annual earnings estimates for the entity is an estimate of EPS before non-recurring items and including employee stock options expenses.
Investing in Allstate, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Allstate along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Allstate's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Allstate. Your research has to be compared to or analyzed against Allstate's peers to derive any actionable benefits. When done correctly, Allstate's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Allstate.

How important is Allstate's Liquidity

Allstate financial leverage refers to using borrowed capital as a funding source to finance The Allstate ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Allstate financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Allstate's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Allstate's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Allstate's total debt and its cash.

Allstate Correlation with Peers

Investors in Allstate can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in The Allstate. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Allstate and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Allstate is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Allstate for more details

An Additional Perspective On Allstate

The modest gains experienced by current holders of Allstate could raise concerns from investors as the firm closed today at a share price of 101.16 on 1016843.000 in volume. The company management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in May. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 0.9638. The very small Stock volatility is a good signal to investors with longer term investment horizons. Allstate discloses 9.13b in gross profit. Allstate is trading at 102.14. This is 0.85 percent up. Day Low was 101.16. Allstate Income Tax Expense is considerably stable at the moment. Also, Allstate Long Term Debt is considerably stable at the moment.
 2008 2009 2018 2019 (projected)
Allstate Cost of Revenue 25,466,000,000  16,069,000,000  18,479,350,000  22,016,157,895 
Allstate Consolidated Income 2,252,000,000  1,904,000,000  1,713,600,000  1,826,087,719 
To sum up, I belive Allstate is currently fairly valued. It Ignores market trends and projects below average probability of financial unrest in the next two years. Our concluding buy vs hold vs sell advice on the business is Strong Hold.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of The Allstate. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com