Goldman Sachs’ Stocks With Highest Consensus Returns: 42 Stocks With The Highest Consensus ROE

9. The Allstate Corporation (NYSE:ALL)

Consensus ROE: 30%

Number of Hedge Fund Investors in Q2 2024: 61

The Allstate Corporation (NYSE:ALL) is one of the biggest auto and homeowner insurance companies in America. This lends it a sizeable asset base of a whopping $103 billion, which is key in today’s rapidly evolving insurance market on the back of climate change. The Allstate Corporation (NYSE:ALL)’s presence in the auto and homeowner insurance market also means that the firm can grow either division by cross selling products. Yet, The Allstate Corporation (NYSE:ALL)’s homeowner insurance business carries risks as well, since hurricanes and other climate catastrophes have driven several homeowner insurance providers out of markets such as Florida. This was also the case in October as The Allstate Corporation (NYSE:ALL)’s shares dropped by 6% within an hour of trading as Hurricane Milton was categorized as a Category 4 storm. Yet, the climate has also helped the firm, as milder weather along with other factors has pushed the stock 29% higher year to date. Cost control should drive the hypothesis in the near term, as after sizeable premium increases, The Allstate Corporation (NYSE:ALL) can grow earnings by reducing costs.

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.”