Key insights
- The author believes Allstate (ALL) is significantly undervalued based on its low P/E ratio, recent earnings beat, and a substantial buyback program. They anticipate a breakout from its current trading range, potentially leading to significant gains. The positive earnings surprise and buyback announcement are bullish signals for the stock.
The stock is Allstate the insurance company (ALL). It’s tried to breakout of the 210-220 range 8 times in the past year and a bit. It’s consolidating so much that once this breaks out it’s going to shoot up like crazy.
It trades at a P/E ratio of 5!!! When the market realizes it is wayyy to cheap and undervalued it can triple from here and still have below a market value. That’s crazy and not even including any growth whatsoever. In my opinion this stock could be a 5xer including just a little bit of growth. If it surprises any upside on expectations then watch out.
It’s last earnings they implemented a $4 billion buyback program on a market cap of $58 billion. Its earnings were $10.65 which was over 45% more than analyst expectations. In my opinion this is one of the cheapest stocks out there and could be one of the very best opportunities.