The Allstate Corporation ALL recently announced total catastrophe (CAT) losses for July and August at $814 million or $643 million after taxes. For August alone, the amount was estimated at $272 million or $215 million after taxes. August year-to-date catastrophe losses came in at $3.67 billion.
In the first half of 2024, its catastrophe losses dropped 35% year over year to $2.85 billion. The August catastrophe losses include 15 events estimated at $306 million. This follows July’s catastrophe losses of $587 million from 20 events. Last month, it said that catastrophe losses for July included the initial loss estimate from Hurricane Beryl of $226 million.
Beyond ALL’s Losses
Investors are showing confidence, pushing the stock to a 52-week high. The stock closed at $191 on Friday while registering a 52-week high of $193.19. The company continues to benefit from strategic rate increases, higher market-based investment income and growing insurance premiums. Improved Property-Liability underwriting, driven by its profit improvement plan and lower expenses, is also boosting performance.
Shares of Allstate have jumped 17.6% in the past three months compared with the industry’s growth of 10.4%.
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Should You Book Profits Now?
Despite hitting a 52-week high, it’s still a good time to hold onto Allstate. This Zacks Rank #3 (Hold) company is benefiting from growing premiums, improving underwriting performance and efficiency-boosting initiatives. Allstate is shedding non-core assets to focus on more profitable areas. For instance, it's selling its Employer Voluntary Benefits business to StanCorp Financial Group for $2 billion in cash. This sale will allow Allstate to exit most of its health and benefits operations and focus more on its core Property-Liability and Protection Services businesses.
The positive estimate revisions reflect analysts' confidence in Allstate's performance and market potential. The Zacks Consensus Estimate for 2024 earnings is projected at $15.20 per share, a significant increase from 95 cents a year ago, indicating strong growth potential moving forward.
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Better-Ranked Stocks
Investors interested in the broader Finance space may look at some better-ranked players like MGIC Investment Corporation MTG, Jackson Financial Inc. JXN and Arch Capital Group Ltd. ACGL. While MGIC Investment currently sports a Zacks Rank #1 (Strong Buy), Jackson Financial and Arch Capital carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MGIC Investment’s current-year earnings suggests a 9.1% year-over-year increase. During the past 60 days, MTG has witnessed three upward estimate revisions against none in the opposite direction. The consensus mark for current-year revenues is pegged at $1.2 billion, indicating a 4.7% increase from a year ago.
The Zacks Consensus Estimate for Jackson Financial’s current-year earnings is pegged at $18.49 per share, which indicates 44% year-over-year growth. It witnessed two upward estimate revisions in the past 60 days against no downward movement. The consensus mark for JXN’s current year revenues suggests a 116.7% surge from a year ago.
The Zacks Consensus Estimate for Arch Capital’s 2024 earnings indicates 6.6% year-over-year growth. During the past 60 days, ACGL has witnessed six upward estimate revisions against none in the opposite direction. It beat earnings estimates in each of the past four quarters, with an average surprise of 28.9%.
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See This Stock Now for Free >>MGIC Investment Corporation (MTG) : Free Stock Analysis Report
The Allstate Corporation (ALL) : Free Stock Analysis Report
Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
Jackson Financial Inc. (JXN) : Free Stock Analysis Report
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