Why the Earnings Streak Will Continue for Allstate Corporation (ALL)

Looking for a stock that might be in a good position to beat earnings at its next report? Consider The Allstate Corporation ALL, a firm in the Insurance - Property and Casualty industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, ALL has beaten estimates by at least 50% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, ALL was expected to post 90 cents per share, while it actually produced $1.38 per share, a beat of 53.3%. Meanwhile, for the most recent quarter, the company looked to deliver 88 cents per share, when it actually saw $1.60 per share instead, representing an 81.8% positive surprise.

Allstate Corporation (The) Price and EPS Surprise

Allstate Corporation (The) Price and EPS Surprise | Allstate Corporation (The) Quote

Thanks in part to this history, recent estimates have been moving higher for Allstate. In fact, the Earnings ESP for ALL is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for ALL, as the firm currently has a Zacks Earnings ESP of 10.66%, so another beat could be around the corner.

This is particularly true when you consider that ALL has a great Zacks Rank #2 (Buy), which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that ALL could see another beat at its next report, especially if recent trends are any guide.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Allstate Corporation (The) (ALL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research