Allstate: A Profitability Powerhouse Trading At A Discount To Peers
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William Davis257 FollowersFollow5ShareSavePlay(14min)CommentsSummaryAllstate has executed a successful turnaround, posting robust profitability and revenue growth, with Q3 EPS of $11.17 versus $7.54 consensus.ALL’s operational improvements, AI-driven underwriting, and cost controls have expanded active policies and sharply reduced catastrophe losses, enhancing bottom-line performance.Despite sector-leading return on equity (37.23%), ALL trades at a discounted forward P/E of 7.24, suggesting the market undervalues its recovery and growth prospects.I rate ALL a buy, citing undervaluation, sustained profitability, strong balance sheet, and continued upside despite operational and catastrophe risk headwinds. JHVEPhoto/iStock Editorial via Getty Images Investment Thesis The Allstate Corporation (ALL) is a company that has undergone a dramatic change in direction. Its recent growth and profitability trends make me bullish on the stock. This, coupled with its continued efforts toThis article was written byWilliam Davis257 FollowersFollowWilliam has been an avid student of the stock market for over a decade. Being an avid student of political economics his entire professional life gives him a unique insight into the macroeconomy and how it impacts assets. Having learned the value of a comprehensive and fundamental approach, he has a keen eye for identifying hidden gems. Currently, he spends much of his time analyzing data and writing for financial websites.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.