Allstate: Improving Results But Lackluster Capital Returns (Rating Upgrade)
Portfolio Pulse from
Allstate's Q4 results exceeded expectations with $7.67 EPS and 11% revenue growth, driven by price hikes and cost cuts. Despite a 22% rise in shares over the past year, recent concerns about California wildfires led to a 9% pullback. Investment income is benefiting from rising rates, but significant share buybacks are not expected soon, affecting share price potential.
February 07, 2025 | 1:15 pm
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Allstate's Q4 results were strong, with EPS of $7.67 and 11% revenue growth. However, recent concerns about California wildfires have caused a 9% pullback in shares. While investment income is benefiting from rising rates, the lack of significant buybacks may limit share price potential.
Allstate's strong Q4 results are a positive indicator, but the recent 9% share price pullback due to wildfire concerns and the lack of significant buybacks suggest a neutral short-term impact. Rising rates are a positive for investment income, but without buybacks, share price growth may be limited.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100