And the insurance giant could rise even more due to its ability to withstand inflation and a current 2.4% dividend. But another likely reason is Big Money lifting the stock.
Allstate Attracts Big Money
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Allstate has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals ALL has made the last year.
The last few months have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:
In the last year, the stock attracted 10 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
- 1-month outperformance vs. Financial Select Sector SPDR ETF (+9.6% vs. XLF)
Outperformance is important for leading stocks.
Allstate Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Allstate has been growing sales and earnings at double-digit rates. Take a look:
- 1-year sales growth rate (+20.7%)
- 3-year EPS growth rate (+55.5%)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, ALL has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
ALL has a lot of qualities that are attracting Big Money. It’s made this list 17 times since 1994, with its first appearance on 02/27/1995…and gaining 1,843.4% since. The blue bars below show the times that Allstate was a top pick:
It’s been a top stock in the financial sector according to the MAPsignals process. I wouldn’t be surprised if ALL makes additional appearances in the years to come. Let’s tie this all together.
Allstate Price Prediction
The Allstate rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it currently pays a 2.4% dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in ALL at the time of publication.
Learn more about the MAPsignals process here.