BofA’s Top 10 Growth Stocks with The Fastest Projected EPS Growth Rates

2. The Allstate Corporation (NYSE:ALL)

Number of Hedge Fund Holders In Q2 2024: 61

Projected EPS Growth Rate: 53.2%

The Allstate Corporation (NYSE:ALL) is a sizable American home and auto insurance company. It is one of the biggest companies of its kind and commands a sizable asset base of $103 billion. Since The Allstate Corporation (NYSE:ALL) operates in both the auto insurance and home insurance markets, it benefits from the ability to cross sell its products. However, home insurance providers–particularly those with exposure to coastal regions such as Florida–have had to deal with the impact of hurricanes. This was evident in The Allstate Corporation (NYSE:ALL)’s shares, as they tumbled by 6% in October after Hurricane Milton was declared to be a Category 4 storm. That said, a milder climate overall–minus Milton–has helped the firm reduce its catastrophe losses. This has led to the shares being up 36% year-to-date.

Ariel Investments mentioned The Allstate Corporation (NYSE:ALL) in its Q2 2024 investor letter. Here is what the fund said:

“We added property and casualty insurer, Allstate Corporation. A challenging macro-environment, inflation and lower reserve development led to significant underwriting losses across key markets, presenting us with an attractive entry point. Looking ahead, we expect the strong pricing environment, coupled with lower inflationary pressure and future premium growth to yield upside for shares. Additionally, management is committed to improving its adjusted expense ratio and recently made upgrades to its claims handling processes to minimize loss development and lower claim severities.”