10 Most Undervalued Insurance Stocks to Buy Now

2. The Allstate Corporation (NYSE:ALL)

Forward P/E: 11.49

No. of Hedge Fund Holders: 71

The Allstate Corporation (NYSE:ALL) is an American insurance provider that offers a range of property and casualty, health, and protection products. Its products include auto, home, life, and supplemental insurance. The company also offers consumer protection plans, roadside assistance, and analytics solutions. These are distributed through agents, online platforms, and various partnerships. ALL is primarily engaged in the property and casualty insurance business in the U.S. and Canada.

On February 28, Piper Sandler analyst Paul Newsome reiterated an Overweight rating on ALL shares and kept the price target at $248 per share. The analyst is optimistic about Allstate’s outlook as Newsome anticipates that the company will overcome its ongoing challenges and achieve positive auto policy-in-force (PIF) growth in 2025. The Allstate Corporation (NYSE:ALL) has been under scrutiny due to concerns over the decline in auto insurance PIF within its auto segment. The change in Allstate’s situation is expected due to the current market conditions and the management’s proactive strategies.

Newsome expects the underwriting environment to remain favorable for Allstate throughout 2025, which could further enhance the company’s valuation. The conducive underwriting climate as well as management’s efforts should possibly mitigate risks in auto PIF this year.

Diamond Hill Large Cap Concentrated Strategy stated the following regarding The Allstate Corporation (NYSE:ALL) in its Q2 2024 investor letter:

“Among our bottom Q2 contributors were Abbott Laboratories, ConocoPhillips, and The Allstate Corporation (NYSE:ALL). Allstate, one of the US’s largest auto and homeowners’ insurance providers has seen the pace of premium price increases decelerate, weighing on investor sentiment around the stock. However, the company’s underlying fundamentals are intact, margin expansion should continue through the year, and the outlook remains constructive.”