Allstate: Attractive Even As Profits Are Likely Peaking

Seeking Profits 5.71K Followers Follow Summary Allstate remains a 'buy' as strong Q2 results, reserve releases, and a quiet catastrophe environment drive robust earnings and capital returns. ALL's underwriting margins are healthy, with combined ratios benefiting from $1.5B in reserve releases and minimal catastrophe losses, though normalization is expected. Investment income surged 34% as ALL leverages higher rates and expands its equity allocation, while maintaining a conservative, high-quality fixed-income portfolio. Shares trade at 7x current-year earnings and near 9x normalized EPS, supporting over 10% upside as buybacks and durable margins enhance long-term value. Brett_Hondow/iStock Editorial via Getty Images Shares of Allstate ( ALL ) have been a solid performer over the past year, gaining about 25%. Most of the gains have been realized in the past three months after a long period of consolidation. The auto This article was written by Seeking Profits 5.71K Followers Follow Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.