Is The Allstate Corporation (ALL) Among The Stocks That Could Surge From LA Wildfires Recovery Efforts?

We recently compiled a list of the 7 Stocks That Could Surge From LA Wildfires Recovery Efforts. In this article, we are going to take a look at where The Allstate Corporation (NYSE:ALL) stands against the other stocks.

Los Angeles wildfires continue to wreak havoc in the region, taking precious lives and destroying thousands of homes. The LA County Sheriff announced that nearly 10,000 structures were lost in the wildfires, but this number has already gone up and is expected to rise further as the authorities struggle to contain the fires.

Once the dust settles, there will be a huge demand for reconstruction of properties destroyed in the wildfires. The Biden administration has already promised federal reimbursements for the recovery efforts going on. Homebuilders could possibly benefit from this government support and the resulting spending surge as well.

To come up with the list of 7 stocks that could surge from LA wildfire recovery efforts, we considered stocks with a market cap of at least $4 billion.

A financial advisor giving advice to a couple, illustrating the personal finance and insurance products the company offers.

The Allstate Corporation (NYSE:ALL)

ALL stock is down 5% since last Monday. The stock’s valuation continues to impress investors. Some would argue that the recent multiple expansion has priced in a lot of growth, but the re-rating is consistent with the rest of the market. The stock is trading at a forward EPS multiple of 7.7 compared to the S&P’s multiple of 22.

This attractive valuation is also better than that of some of its peers, including Travelers and Progressive Corp. The company recently survived activist investor Nelson Peltz, who gave up and sold 3.04 million shares, a sizable part of his total holding. While this would disappoint those who wanted a shakeup at the firm, investors would appreciate that the company can now get back to focusing on its affairs.

Overall ALL ranks 7th on our list of the stocks that could surge from LA wildfires recovery efforts. While we acknowledge the potential of ALL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as ALL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.