Shares of Allstate (ALL) have been strong performers lately, with the stock up 8.5% over the past month. The stock hit a new 52-week high of $260.65 in the previous session. Allstate has gained 24.9% since the start of the year compared to the 6.1% gain for the Zacks Finance sector and the 1.5% return for the Zacks Insurance - Property and Casualty industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 29, 2026, Allstate reported EPS of $10.65 versus consensus estimate of $7.43.

For the current fiscal year, Allstate is expected to post earnings of $30.51 per share on $71.42 in revenues. This represents a -12.4% change in EPS on a 5.26% change in revenues. For the next fiscal year, the company is expected to earn $26.57 per share on $75.15 in revenues. This represents a year-over-year change of -12.91% and 5.22%, respectively.

Valuation Metrics

Allstate may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Allstate has a Value Score of A. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 8.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.9X. On a trailing cash flow basis, the stock currently trades at 6.8X versus its peer group's average of 10.2X. Additionally, the stock has a PEG ratio of 0.45. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Allstate an interesting choice for value investors.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Allstate currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Allstate passes the test. Thus, it seems as though Allstate shares could have potential in the weeks and months to come.

How Does ALL Stack Up to the Competition?

Shares of ALL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The Travelers Companies, Inc. (TRV). TRV has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of A.

Earnings were strong last quarter. The Travelers Companies, Inc. beat our consensus estimate by 89.08%, and for the current fiscal year, TRV is expected to post earnings of $32.49 per share on revenue of $48.83 billion.

Shares of The Travelers Companies, Inc. have gained 18.3% over the past month, and currently trade at a forward P/E of 11.92X and a P/CF of 6.05X.

The Insurance - Property and Casualty industry may rank in the bottom 60% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for ALL and TRV, even beyond their own solid fundamental situation.

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The Allstate Corporation (ALL): Free Stock Analysis Report

 

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This article originally published on Zacks Investment Research (zacks.com).

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