Allstate stock is holding its year-to-date breakeven level
The Allstate Corporation (NYSE:ALL) is probably known more for its catchy commercials than the stock's performance. But one of the largest publicly traded insurance companies in the U.S. has a market cap of $34.36 billion, and its current technical setup is worth exploring.
Allstate stock was last seen at $126.17, a ways off its all-time high of $144.46 from April 21. But ALL is holding its year-to-date breakeven for the last three weeks. The shares now trade at an intriguing forward price-earnings ratio of 10.68 and a price-sales ratio of 0.72. Allstate stock also offers a decent dividend yield of 2.8% at a forward dividend of $3.40.
The insurance business, however, hasn’t presented a great level of security in recent years. Although its revenue growth has remained consistent throughout multiple years, Allstate reported a 72.8% decrease in net income for fiscal 2021. The trend is also set to continue for fiscal 2022, with estimates projecting 14.9% revenue growth but a 61.2% earnings decline. It isn’t until fiscal 2023 that ALL is expected to see an uptrend in earnings, with estimated predicting 121.2% earnings growth, as well as 4.7% revenue growth. Nonetheless, Allstate stock’s low valuation, coupled with its dividend, make it a relatively safe bet for long-term investors.