The Allstate Corporation ALL recently announced estimated catastrophe (CAT) losses of $102 million, pretax, from Hurricane Milton. For October 2024 alone, the amount was estimated at $286 million or $226 million after taxes. Meanwhile, the company only recorded CAT losses of $68 million in the fourth quarter of 2023.
October year-to-date catastrophe losses came in at $4.84 billion or $3.82 billion after taxes. Last month’s CAT losses include $144 million (pretax) in unfavorable reserve re-estimates from Hurricane Helene, primarily affecting Georgia, South and North Carolina.
Beyond ALL’s CAT Losses
Last month, the company reported a third-quarter 2024 adjusted net income of $3.91 per share, which outpaced the Zacks Consensus Estimate by a whopping 77.7%, after incurring catastrophe losses of $1.7 billion.
Investors are showing confidence, pushing the stock to a 52-week high. The stock closed at $203.48 on Thursday while registering a 52-week high of $203.53. The company continues to benefit from rising premiums from a diverse product portfolio, strategic acquisitions, and disciplined pricing.
Shares of Allstate have jumped 12.8% in the past three months compared with the industry’s growth of 3.9%.
Image Source: Zacks Investment Research
Should You Buy ALL?
The Zacks Consensus Estimate for ALL’s 2024 earnings is projected at $16.01 per share, a significant increase from 95 cents a year ago. The consensus mark for 2025 earnings signals a further 19.5% gain, indicating strong growth potential.
Even at its 52-week high, now is a good time to increase your position in Allstate. The company is capitalizing on improved underwriting performance and efficiency-driven initiatives. By divesting non-core assets, Allstate is sharpening its focus on more profitable areas. It currently has a Zacks Rank #2 (Buy).
Other Top-Ranked Stocks
Investors interested in the broader Finance space may look at some other top-ranked players like Root, Inc. ROOT, AXIS Capital Holdings Limited AXS and Brown & Brown, Inc. BRO. While Root currently sports a Zacks Rank #1 (Strong Buy), AXIS Capital and Brown & Brown carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for ROOT’s current-year earnings indicates an 88.2% year-over-year improvement. It beat earnings estimates in each of the trailing four quarters, with an average surprise of 127.2%. Furthermore, the consensus estimate for Root’s 2024 revenues indicates 147.9% year-over-year growth.
The consensus mark for AXIS Capital’s current-year earnings indicates 10.6% year-over-year growth. It beat earnings estimates in each of the trailing four quarters, with an average surprise of 90.3%. Furthermore, the consensus estimate for AXS’ 2024 revenues indicates a 7.4% year-over-year increase.
The Zacks Consensus Estimate for Brown & Brown’s current-year earnings is pegged at $3.74 per share, which indicates 33.1% year-over-year growth. It has witnessed five upward estimate revisions against none in the opposite direction in the past month. BRO beat earnings estimates in each of the past four quarters, with an average surprise of 6.9%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
