Will Allstate continue to be woozy in February?
 | By Ellen Johnson | Macroaxis Story |
Even with considerably fragile technical indicators, Allstate may actually be approaching a critical reversion point that can send shares even higher in February 2020. 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 about 6.61%. 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 Corporation has beta of -0.3855 . This suggests as returns on benchmark increase, returns on holding Allstate are expected to decrease at a much smaller rate. During bear market, however, Allstate Corporation is likely to outperform the market. Additionally, the company has an alpha of 0.1769 implying that it can potentially generate 0.1769% excess return over Russell 2000 after adjusting for the inherited market risk (beta).
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Reviewed by Michael Smolkin
Allstate has 7.17 B in debt with debt to equity (D/E) ratio of 27.4 . This implies that the organization may be unable to create cash to meet all of its financial commitments. The entity has Current Ratio of 0.49 suggesting that it has not enough short term capital to pay financial commitments when the payables are due. The company dividends can provide a clue to current valuation of the stock. This firm one year expected dividend income is about $0.95 per share. Earning per share calculations of the entity is based on official Zacks consensus of 7 analysts regarding the stock future annual earnings. Given the historical accuracy of 71.28%, the future earnings per share of the company is estimated to be 10.1614 with lowest and highest values of 9.61 and 10.5 respectively. Please note that this consensus of annual earnings estimates for Allstate is an estimate of EPS before non-recurring items and including employee stock options expenses.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Allstate income statement, its balance sheet, and the statement of cash flows. Potential Allstate investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Allstate investors may use each financial statement separately, they are all related. The changes in Allstate's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Allstate's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Allstate fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Allstate performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Allstate shares is the value that is considered the true value of the share. If the intrinsic value of Allstate is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Allstate. Please read more on our fundamental analysis page. How effective is Allstate in utilizing its assets?
The Allstate reports assets on its Balance Sheet. It represents the amount of Allstate resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Allstate aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Property & Casualty Insurance space. To get a better handle on how balance sheet or income statements item affect Allstate volatility, please check the breakdown of all its fundamentals.Are Allstate Earnings Expected to grow?
The future earnings power of Allstate involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Allstate factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Allstate stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Allstate expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Allstate earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Allstate dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Allstate one year expected dividend income is about USD2.63 per share.
Dividend Paid And Capex Coverage Ratio is expected to rise to 8.99 this year, although the value of Dividends Paid is projected to rise to (980.4 M). | Last Reported | Projected for Next Year | ||
| Dividends Paid | -1 B | -980.4 M | |
| Dividend Yield | 0.03 | 0.02 | |
| Dividend Payout Ratio | (5.49) | (5.21) | |
| Dividend Paid And Capex Coverage Ratio | 5.53 | 8.99 |
Investing in dividend-paying stocks, such as The Allstate is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Allstate must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Allstate. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.Allstate Gross Profit
Allstate Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Allstate previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Allstate Gross Profit growth over the last 10 years. Please check Allstate's gross profit and other fundamental indicators for more details.
An Additional Perspective On Allstate
The firm has beta of 0.81. As returns on market increase, Allstate returns are expected to increase less than the market. However during bear market, the loss on holding Allstate will be expected to be smaller as well. The modest gains experienced by current holders of Allstate could raise concerns from investors as the firm closed today at a share price of 113.05 on 1691180.000 in volume. The company directors and management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in December. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.22. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Allstate is trading at 114.26. This is 2.8 percent decrease. Started trading at 114.26. Allstate Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The new value of Allstate Earnings Before Interest Taxes and Depreciation Amortization USD is 4,115,300,000. Moreover, Allstate Earnings Before Interest Taxes and Depreciation Amortization EBITDA is considerably stable at the moment. On the whole, we see that Allstate Slowly supersedes market. The business is fairly valued with below average probability of distress within the next 24 months. Our overall 'Buy/Hold/Sell' recommendation on the business is Sell.
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