15 Best and Cheap Stocks to Buy According to Billionaires

4. The Allstate Corporation (NYSE:ALL)

Forward P/E Ratio: 12.02

No. of Billionaire Investors: 19

The Allstate Corporation (NYSE:ALL) is a leading insurance provider that offers various property and casualty, health, and protection products. Allstate’s products include auto, home, life, and supplemental insurance. It also provides consumer protection plans, roadside assistance, and analytics solutions. The company’s core business lies around property and casualty insurance in the U.S. and Canada.

In Q4 2024, The Allstate Corporation (NYSE:ALL) posted a significant increase in total revenues, reaching $16.5 billion, up 11.3% from a year ago. The company’s Protection Plans segment experienced notable policy growth in 2024 and now covers 160 million policies, an increase of 60 million since 2019. During Q4, the segment’s revenue reached $528 million, rising by 20.3% year-over-year. Whereas, the segment’s full-year revenue touched $2 billion, representing a 23.9% CAGR since 2019, driven by both domestic and international growth.

On February 28, Paul Newsome from Piper Sandler reiterated an Overweight rating on ALL, maintaining the price target at $248 per share. Newsome expects the company to overcome its ongoing challenges and achieve positive auto policy-in-force (PIF) growth in 2025.

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.”