Allstate Stock: Investors Are Missing A Golden Opportunity

Summary

• Allstate has a rich history of profitability and has grown net operating profit after-tax from over $1.87 billion in 2016 to more than $6.2 billion in 2021.
• The company’s return on invested capital has dramatically improved, rising from 8.2% in 2016 to 22.3% for the last 12 months.
• Allstate employs conservative underwriting practices which, in the short term, may hurt profitability but which, in the long run, will improve it and make the company stronger.
• A rise in the frequency of car accidents has hurt the company’s profitability and led to a slump in the stock price. I see a potential 160% upside for the ALL stock.

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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.