The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. It operates in five segments: Allstate Protection; Protection Services; Allstate Health and Benefits; Run-off Property-Liability; and Corporate and Other segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; other personal lines products; and commercial lines products through agents, contact centers, and online. The Protection Services segment provides consumer product protection; protection and insurance products, including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel, and paintless dent repair protection; and roadside assistance, device and mobile data collection services, and analytic solutions using automotive telematics information, as well as identity theft protection and remediation services. This segment also offers its products under various brands, including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity, Avail, and Allstate Identity Protection. The Allstate Health and Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products; stop-loss and fully insured group health products to employers; and short-term medical and medicare supplement insurance to individuals. The Run-off Property-Liability segment offers property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. The Corporate and Other segment provides debt services, as well as non-insurance operations. It sells its products through agents, independent agents, call and contact centers, retailers, direct to consumer, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, Illinois.

Allstate Corporation демонстрирует смешанную картину с точки зрения фундаментальных показателей. С одной стороны, мультипликаторы P/E и P/S значительно ниже медианных значений по отрасли, что указывает на недооцененность, однако P/B выше медианы, что может сигнализировать о переоцененности. Динамика ROE и ROA показывает значительный рост, что положительно сказывается на общей оценке компании. Тем не менее, низкие значения текущего и быстрой ликвидности (current_ratio и quick_ratio) вызывают опасения относительно краткосрочных обязательств. Дивидендная доходность отсутствует, что также является негативным фактором. Несмотря на это, компания демонстрирует сильные результаты по выручке и чистой прибыли, которые значительно превышают медианные значения отрасли. Таким образом, несмотря на некоторые негативные аспекты, Allstate имеет потенциал для роста, но требует осторожного подхода к оценке риска ввиду низкой ликвидности и отсутствия дивидендов.

Allstate Corporation (The)

(1:00) - What Can We Apply From The Dot-com Stock Bust To Create A Winning Portfolio Today
(18:30) - Where Should You Be Looking For Strong Value Investments?
(38:00) - Episode Roundup: MGA, ALL, COLM, DECK
Welcome to Episode #433 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Growth stocks have outperformed value for a decade. Large cap stocks have outperformed small caps for years as well. As a result, many investors have gone with what’s working, which is large cap growth stocks, especially technology.
But the 1990s and 2000s, which encompassed the dot-com boom and bust, provides lessons on what can happen when you don’t diversify. It can also provide lessons on what happens when you are taking money out of your stock portfolio during a bear market.
Blast from the Past Personal Finance Radio Program
In 2025, Tracey heard a pre-recorded personal finance program from Bill Geiger on a Chicago all-news radio station, which turned out to be from 2012. In it, a couple retired in 2000 at age 65. They had $1 million in their portfolio. It was apparently invested in growth stocks, as those had been red-hot in the prior decade.
The couple wanted to take $50,000 a year out of the portfolio, which would have been 5%. Unfortunately, the stock market finished lower in 2000, 2001 and 2002. By 2003, their portfolio was down to $497,000.
The story goes on. Tune into the podcast to find out where they stood in 2012.
This is the sequence of return risk for investors. It can happen anytime you are selling stocks from your portfolio at the same time there is a stock market sell-off.
Lessons from the Dot-com Stock Bust
Be diverse. Own growth stocks but also own value.
Own a mix of caps and industries. Own small caps along with large caps. Own industrials and transports along with technology. Don’t put all your eggs into one basket.
Talk with your financial advisor about methods to abate the sequence of return risk in your own portfolio. Every investor has different goals. Make a plan for bull, and bear, markets.
3 Strong Buy Value Stocks for Your Short List
These three companies are on Zacks’ list of #1 (Strong Buy) stocks, which is Zacks’ highest recommendation. At the time of the podcast, there were only 203 stocks which were Strong Buys, out of over 4,000 stocks with the Rank.
Tracey also looked for companies with a Zacks Value Style Score of A, which is the highest style score. It did not disappoint, as all three stocks are cheap on the fundamentals, such as price-to-earnings (P/E) ratios.
1. Magna International Inc. (MGA)
Magna International is the largest automotive supplier in the world. It has customers in North America, Europe and China. Magna currently has a strategic collaboration with NVIDIA.
Shares of Magna were rallying in 2026 but have fallen 4.7% in the last month on the Iran War weakness. Magna’s earnings are expected to turn around. The Zacks Consensus is looking for earnings growth of 19% in 2026 and another 17% in 2027.
Magna is dirt cheap. It trades with a forward P/E ratio of 8.3. A P/E under 10 usually indicates deep value. Magna is shareholder friendly and currently pays a dividend, yielding 3.5%.
Magna is a Zacks #1 Rank (Strong Buy).
Is it time for value investors to get back into the auto stocks like Magna International?
2. The Allstate Corp. (ALL)
The Allstate Corp. is a property and casualty insurer. While earnings are expected to fall 27.1% in 2026, 5 earnings estimates were raised in the last 30 days and 1 in the last week. That has pushed up the 2026 Zacks Consensus to $25.40 from $24.86 just 30 days ago. This is a bullish signal. No estimates have been cut in that same period.
Shares of Allstate have been in a narrow trading range for the last year. It’s up just 2.1% during that time. But Allstate is cheap. It trades with a forward P/E of just 8.1. Allstate also pays a dividend, currently yielding 2.1%.
Allstate is a Zacks Rank #1 (Strong Buy).
Should value investors consider a property insurer like Allstate in 2026?
3. Columbia Sportswear Co. (COLM)
Columbia Sportswear designs and markets outdoor, active and lifestyle products including apparel, footwear, accessories, and equipment. It has four primary brands: Columbia, Mountain Hardwear, SOREL and prAna.
Given tariffs and concerns about consumer spending, it’s not surprising that analysts believe Columbia Sportswear’s 2026 earnings will decline 6.2%. But they expect a rebound of 17.1% in 2027.
Shares of Columbia Sportswear have fallen 12.7% in the last month and are near 5-year lows. It’s cheap, with a forward P/E of 15.9. A P/E of 15 or lower usually indicates value. Columbia pays a dividend which is currently yielding 2.2%.
Columbia is a Zacks #1 Rank (Strong Buy).
Is it time to look at some of the beaten-down retail stocks like Columbia Sportswear?
What Else Should You Know About Lessons from the Dot-com Stock Bust?
Tune into this week’s podcast to find out.
Just Released: Zacks Top 10 Stocks for 2026
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Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.
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The Allstate Corporation (ALL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lessons from the Dot-com Stock Bust

The Travelers Companies, Inc. TRV is one of the leading writers of auto and homeowners’ insurance, as well as commercial U.S. property-casualty insurance. The insurer is poised to grow on strong pricing momentum, as the company continues to implement rate increases across its business and personal insurance segments to offset inflationary pressures.
Shares of Travelers have gained 15.7% over the past year, outperforming its industry’s 5% decline over the same period. The stock has also surpassed the broader Finance sector, which has recorded a 15.7% gain over the past year. It has a market capitalization of $65.4 billion.
Image Source: Zacks Investment Research
Shares of other insurers, such as The Allstate Corporation ALL and Arch Capital Group Ltd. ACGL, are also outperforming the industry average, while The Progressive Corporation PGR has underperformed the industry.
TRV Shares are Expensive
Its shares are trading at a premium to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 2.05X is higher than the industry average of 1.38X. However, TRV has a Value Score of A.
Image Source: Zacks Investment Research
Shares of Allstate, Arch Capital, and Progressive are also trading at multiples above the industry average. Their price-to-book ratios are 1.86x, 1.46x and 3.97x, respectively.
Zacks Estimates for TRV
The Zacks Consensus Estimate for 2026 revenues is pegged at $50.1 billion, suggesting 2.6% year-over-year growth. The consensus estimate for earnings per share is currently pegged at $27.2 for 2026, indicating a 1.6% year-over-year decline.
Over the past month, the company has witnessed three upward revisions in earnings estimates, with no revisions in the opposite direction.
Image Source: Zacks Investment Research
While the 2026 earnings estimate for The ALL and The PGR has moved northward over the past 30 days, the same for ACGL has moved south during the same period.
Factors Favoring Travelers
Auto insurance premiums have risen due to higher repair costs, risky driving, more litigation and increased claims. However, growth is expected to slow as insurers tighten underwriting and offer more customized, competitively priced policies. The homeowners insurance market still faces challenges from catastrophic losses, insurer withdrawals in high-risk areas and high premiums. Despite this, Travelers remains optimistic due to stricter underwriting, improving claims trends and more bundled auto-home policies.
Travelers’ investment income has grown steadily over the past five years, driven by strong returns from its expanding fixed-income portfolio and improved performance from non-fixed income investments. As a property-casualty insurer, Travelers favors fixed-income securities for stable and predictable cash flows to support claims payments. Approximately 94% of its investment portfolio is allocated to fixed maturities and short-term investments.
In line with the industry's ongoing technological transformation, Travelers has been harnessing cutting-edge technologies, including artificial intelligence, the Internet of Things, data analytics, and cloud computing, to enhance its underwriting, claims handling, customer experience and risk management capabilities. As part of its commitment to innovation, Travelers plans to invest more than $1 billion annually in technology to support continued advancement and operational efficiency.
The company maintains a strong balance sheet, with statutory capital and surplus of $31.06 billion at the end of 2025. Total capital returned to shareholders was $4.18 billion, comprising $3.2 billion of share repurchases and $987 million of dividends for the same period. Also, the board of directors approved a $5 billion share buyback program.
Conclusion
Despite trading at a premium to the industry, Travelers’ strong position in U.S. auto, homeowners, and commercial property-casualty insurance provides a solid base for future growth. Its history of strategic acquisitions further strengthens its market presence. Continued improvement in renewal rates, high customer retention and growth in new business — supported by a diversified portfolio and strong capital position — are expected to drive stable earnings growth.
TRV has a track record of 21 consecutive years of dividend increases, with a compound annual growth rate of 8% over that period. Its current dividend yield of 1.5% is much better than the industry average of 0.3%, making it an attractive pick for yield-seeking investors.
Given the premium valuation and near-term earnings pressure, it is better to stay cautious about this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Just Released: Zacks Top 10 Stocks for 2026
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From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.
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TRV Stock Up 4% YTD, Trades at 2.05X P/B: What Should Investors Know?

Improved pricing, rising climate-related risks and rapid digitization are poised to shape the insurance industry's trajectory in 2026. While insurers continue to face exposure to catastrophe losses linked to climate change, stronger pricing is helping to sustain profitability. Per Global Insurance Market Index by Marsh, global commercial insurance rates fell 4% in the fourth quarter of 2025, marking the sixth consecutive quarterly decrease, driven by ample capacity and increased competition among insurers.
The Federal Reserve slashed interest rate three times in 2025 and hinted at one to two more cuts in 2026, given a soft job market and muted economic growth. Yet, Berkshire Hathaway Inc. BRK.B and The Allstate Corporation ALL — two insurance behemoths — are expected to stay strong.
Meanwhile, the industry's growing adoption of digital innovation is expected to fuel a surge in merger and acquisition (M&A) activity, especially in technology-driven deals, according to Willis Towers Watson’s Quarterly Deal Performance Monitor. Yet, as an investment option, which stock is more attractive for long-term insurance-focused investors? Let’s closely look at the fundamentals of these stocks.
Factors to Consider for BRK.B
Berkshire Hathaway is a highly diversified conglomerate with more than 90 subsidiaries operating across a wide range of industries, including insurance, utilities, railroads, manufacturing, and consumer products. This extensive diversification helps reduce concentration risk and enables the company to remain resilient across different economic cycles.
Insurance remains the core of Berkshire’s business, accounting for roughly one-fourth of total revenues. The segment is well-positioned for continued expansion, supported by steady demand, disciplined underwriting and favorable pricing conditions. Growth in insurance operations also generates a larger insurance float, which strengthens earnings, improves return on equity, and provides substantial capital for investments and acquisitions. This float-based model has long served as a key competitive advantage for Berkshire.
With its significant cash reserves, Berkshire actively seeks opportunities to acquire entire businesses while also increasing its ownership in companies that demonstrate durable earnings, strong competitive advantages and attractive returns on equity. Large acquisitions create new avenues for growth, while smaller bolt-on deals help strengthen and expand existing operations.
Warren Buffett’s investment philosophy focuses on identifying undervalued companies with solid long-term prospects. The company’s recent investments in Japanese trading houses reflect this disciplined and value-oriented strategy. Berkshire’s long-term holdings in companies such as Coca-Cola, American Express, Apple, Bank of America, Chevron and Occidental Petroleum further highlight its commitment to investing in high-quality businesses with durable competitive advantages.
Financially, the company remains solid, with over $100 billion in cash reserves, minimal debt, and a strong credit profile, Berkshire Hathaway’s balance sheet continues to reflect exceptional resilience and financial strength.
However, its net margin deteriorated 840 basis points year over year over last two years. Also, Berkshire’s return on equity of 6.5% lags the industry average of 7.3% but the company has improved the same over time. BRK.B shares have lost 2.1% year to date compared with the industry’s decrease of 2.2%.
Factors to Consider for ALL
Allstate is the third-largest property and casualty insurer and the largest publicly traded personal lines insurer in the United States. The company is currently executing a strategic transformation to become a more cost-efficient and digitally enabled insurer with broad distribution capabilities. Its auto insurance business recently regained targeted profitability, while the homeowners segment continues to deliver stable and attractive returns. As part of this shift, Allstate is focusing more closely on its core strengths and gradually exiting less profitable areas.
The company has been restructuring its portfolio to prioritize its personal property-liability operations, which offer higher returns and greater scalability. These businesses represent areas where Allstate already holds a strong competitive position. By concentrating on these core segments, the company aims to improve operational efficiency and support sustainable long-term profitability.
At the same time, Allstate is expanding its Protection Services segment to create additional growth opportunities beyond traditional insurance. Acquisitions such as SquareTrade, PlumChoice, iCracked and Kingfisher have strengthened its presence in device protection, home services and extended warranty solutions.
Over the past two years, Allstate’s net margin has increased by roughly 1,550 basis points, driven by disciplined underwriting and cost control measures. Additionally, inflation, supply chain challenges and advanced automotive technologies are increasing repair costs, potentially pressuring profitability. Despite these challenges, Allstate continues to support growth and shareholder value through disciplined capital allocation, though its relatively high debt levels remain a concern.
Its return on equity of 39.2% is better than the industry average. ALL shares have lost 1.5% year to date but outperformed the industry.
Estimates for BRK.B and ALL
The Zacks Consensus Estimate for BRK.B’s 2026 revenues implies a year-over-year increase of 7.2% while that for EPS implies a year-over-year increase of 1.2%. EPS estimates have moved 0.8% south over the past seven days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ALL’s 2026 revenues implies a year-over-year increase of 5.2% while that for EPS implies a year-over-year decrease of 27.1%. EPS estimates have moved 0.4% north over the past seven days.
Image Source: Zacks Investment Research
Are BRK.B and ALL Shares Expensive?
Berkshire is trading at a price-to-book multiple of 1.47, above its median of 1.45 over the last five years. ALL’s price-to-book multiple sits at 1.86, lower than its median of 2.17 over the last five years.
Image Source: Zacks Investment Research
Conclusion
Holding shares of Berkshire Hathaway adds dynamism to shareholders’ portfolios. It gives the feel of investing in mutual funds while rewarding investors with higher returns. However, investors are still waiting to see how the conglomerate fares under the leadership of the new CEO. BRK.B has a VGM Score of F.
Allstate represents a compelling investment opportunity, underpinned by improved profitability through disciplined underwriting, ongoing digital transformation and a renewed emphasis on its core personal lines business. While short-term challenges such as inflation and elevated claims costs persist, the rebound in auto margins, increasing policy count, and a robust capital return strategy position the company well for sustained long-term growth. ALL has a VGM Score of A.
On the basis of return on equity, which reflects a company’s efficiency in generating profit from shareholders' equity as well as gives a clear picture of the company's financial health, ALL scores higher than BRK.B. Optimistic analyst sentiment and a favorable VGM Score give an edge to ALL.
BRK.B carries a Zacks Rank #4 (Sell) while ALL sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Just Released: Zacks Top 10 Stocks for 2026
Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.
From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Berkshire vs. Allstate: Which Insurance Leader Is the Better Pick?

The Hanover Insurance Group THG began 2026 by navigating a familiar challenge for property and casualty insurers. While pricing trends and underwriting discipline remain supportive, weather-related losses continue to create uncertainty around earnings. This is particularly relevant after parts of 2025 benefited from relatively mild catastrophe activity. Entering the new year, management reaffirmed a meaningful first-quarter catastrophe assumption following a January winter storm.
THG’s Weather Exposure and 2026 Catastrophe Load
Catastrophe activity remains a key factor in THG’s performance. In the fourth quarter of 2025, catastrophe losses were $27 million, below expectations and historical averages, helping the company post a combined ratio of 89.
Despite this favorable outcome, management did not lower its 2026 outlook. THG kept its full-year catastrophe loss assumption unchanged and reaffirmed a sizable first-quarter estimate following the January storm. The approach reflects a cautious outlook but also underscores the sensitivity of combined ratios to weather events.
While THG has strengthened aggregation management, raised deductibles and expanded loss-prevention tools, maintaining the same catastrophe load leaves less flexibility if weather activity returns to typical levels.
THG’s Earnings Estimates
The Zacks Consensus Estimate for 2026 earnings implies a 11.7% year-over-year decrease, though the same for revenues suggests a 4.9% year-over-year increase.
Image Source: Zacks Investment Research
The consensus estimate witnessed no movement in the last 30 days.
Property Pricing Impact on THG
Pricing conditions remain broadly favorable across commercial and personal lines, although property pricing has started to moderate. In 2025, selective softening appeared in Middle Market property, while competition increased in larger Specialty property accounts and certain Marine segments. Renewal pricing in Core Commercial also slowed slightly, largely due to property trends.
This shift could affect margin expansion. THG’s outlook assumes that pricing improvements will continue to offset elevated loss severity, particularly in commercial and personal auto liability. If property pricing weakens faster than loss trends improve, margin growth and premium momentum could slow despite solid submission levels and retention.
Zacks Rank and Other Stocks to Consider
THG currently has a Zacks Rank #2 (Buy).
HCI Group HCI, Heritage Insurance HRTG and Allstate Corporation ALL are some other top-ranked stocks from the Zacks Property and Casualty Insurance industry. All three stocks currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for 2026 and 2027 earnings of HCI Group, Heritage Insurance and Allstate witnessed northbound movement in the last 30 days. In terms of share price movement, HCI Group, Heritage Insurance and Allstate lost 14.2%, 9.4% and 3%, respectively, in the past three months.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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THG Cat Risk Outlook: Can Pricing Offset Weather Volatility?

The Hanover Insurance Group THG trades at 1.73x trailing 12-month book value per share, a level that sits above the industry's 1.39x but far below broader market yardsticks like the Zacks Finance sector at 4.14x and the S&P 500 at 7.96x.
Property and casualty insurers often get valued off book value because underwriting results and investment income ultimately feed surplus and, over time, book value per share. For THG, the key debate is whether today’s price-to-book is earned by real underwriting progress and steady capital returns.
The current setup puts a clean question in front of investors: Is the multiple justified by improving underlying margins and disciplined balance sheet actions, or is it already discounting too much good news?
Image Source: Zacks Investment Research
Shares of THG are expensive compared to Cincinnati Financial Corporation CINF, but cheaper compared to American Financial Group AFG and The Allstate Corporation ALL.
Hanover’s Book Value Growth and Capital Returns
Book value per share rose to $100.90 at 2025 end, up 5.1% sequentially and 27.4% year over year. The increase was supported by operating earnings and unrealized appreciation.
Capital returns have been active alongside that book value growth. The quarterly dividend was raised 5.6% to 95 cents per share, marking the 21st consecutive annual increase, and the company repurchased $130 million of stock in 2025 plus about $44 million through Jan. 30, 2026.
Balance sheet actions also mattered. Leverage normalized in the first quarter of 2026 after $375 million of notes were retired in January. In valuation terms, these moves can help support resilience because they pair book value compounding with visible shareholder returns and a cleaner leverage profile.
THG Underperforms Industry, Sector and S&P 500 in 3 Months
Shares of THG have lost 6.9% in the past three months, underperforming the industry, sector and Zacks S&P 500 composite in the time frame.
Image Source: Zacks Investment Research
Shares of Cincinnati Financial, American Financial and Allstate Corporation have lost 1.5%, 6.2% and 2.2%, respectively, in the past three months.
Hanover’s Risks That Could Compress the Multiple
Weather risk remains the most direct exposure. Even with favorable fourth-quarter catastrophe losses, combined ratios are still sensitive to event frequency and severity, which could reduce earnings visibility if catastrophe activity normalizes.
Competition also poses pressure, with selective softening in Middle Market property and increased competition in larger Specialty property and some Marine lines, potentially limiting margin gains if pricing weakens faster than loss trends improve. Core Commercial performance is another swing factor, as higher loss picks in commercial auto and workers’ compensation have pressured results. Finally, expense discipline is key—while the 2025 expense ratio improved modestly, achieving stronger operating leverage in 2026 carries execution risk if investment spending continues amid only moderate premium growth.
Zacks Rank
THG currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Hanover Stock Trades at 1.73x Book Value: Is the Valuation Worth?

The Hanover Insurance Group THG enters 2026 following a strong 2025 marked by steady premium growth, improved underwriting performance, and higher investment income. The key question for 2026 is not growth itself but whether pricing discipline, business mix, and expense control can sustain margins if catastrophe losses normalize and property insurance competition intensifies.
Setup for 2026 Earnings Momentum
Maintaining earnings momentum in 2026 will depend largely on pricing staying ahead of loss trends, particularly in liability lines where severity remains elevated. Management expects further price increases in both commercial and personal auto liability, which should help support underwriting margins through stable retention and constructive renewal pricing. However, weather remains a major risk.
THG’s Earnings Estimates
The Zacks Consensus Estimate for 2026 earnings implies a 11.7% year-over-year decrease, though the estimate for revenues suggests a 4.9% year-over-year increase.
Image Source: Zacks Investment Research
The consensus estimate witnessed no movement in the last 30 days.
Business Mix and Profit Drivers
Hanover’s earnings profile reflects a balanced portfolio. Core Commercial is the main area to monitor in 2026 due to persistent loss trends and a less predictable path to margin recovery. Personal Lines is currently in a recovery phase, where improved pricing and portfolio discipline can stabilize earnings. Specialty remains the profitability anchor, supported by niche expertise and smaller-account focus.
Technology investments, including AI-enabled triage and upgraded underwriting platforms, are expected to enhance underwriting efficiency and portfolio quality.
Hanover is also refining its strategy through geographic diversification and a focus on higher-value bundled accounts in Personal Lines. With elevated umbrella pricing and disciplined underwriting, Personal Lines could deliver steadier earnings and modest growth in 2026, improving the balance of Hanover’s overall profit mix.
Zacks Rank and Other Stocks to Consider
THG currently has a Zacks Rank #2 (Buy).
HCI Group HCI, Heritage Insurance HRTG and Allstate Corporation ALL are some other top-ranked stocks from the Zacks Property and Casualty Insurance industry. All three stocks currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for 2026 and 2027 earnings of HCI Group, Heritage Insurance and Allstate witnessed northbound movement in the last 30 days. In terms of share price movement, HCI Group, Heritage Insurance and Allstate lost 14.2%, 9.4% and 3%, respectively, in the past three months.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Hanover Insurance Group: What Will Drive Earnings in 2026?

American International Group, Inc. AIG, with a market capitalization of $41.9 billion, provides property-casualty insurance, life insurance, retirement solutions, and other financial services to customers in more than 200 countries and jurisdictions. The company operates through three main segments — North America Commercial, International Commercial, and Global Personal.
In the last six month AIG’s shares have gained 1.3%, outperforming the broader industry’s 7.3% decline over the same period. Based on short-term price targets from 22 analysts, the average target price for AIG is $87.86, implying a potential upside of about 12.7% from the latest closing price of $77.97.
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Zacks Estimates for AIG
The Zacks Consensus Estimate for American International’s 2026 earnings is pegged at $7.80 per share, indicating a 10% year-over-year rise. In the past seven days, it has witnessed two upward estimate revisions against none in the opposite direction. The consensus mark for revenues is pegged at $28.8 billion for 2026, indicating a 5% year-over-year increase. AIG beat on earnings in each of the past four quarters, with an average surprise of 15.2%. AIG carries a Value Score of A.
American International Group, Inc. Price, Consensus and EPS Surprise
Growth Drivers
American International has been streamlining its operations by divesting non-core businesses to focus more on its General Insurance segment. This strategic shift aims to reduce portfolio volatility, enhance cash liquidity and accelerate capital deployment. As part of this initiative, the company plans to divest certain non-core legacy private assets in the near future.
AIG’s expense ratio has been improving, supported by changes in business mix, continued expense discipline and a stronger premium base. The company’s expense ratio declined to 31.1% in 2025 from 32% in 2024, representing an improvement of 90 basis points. This reduction reflects better cost efficiency and stronger expense management.
The General Insurance segment also delivered solid underwriting performance. Underwriting income reached $2.3 billion in 2025, representing a 22% increase from the prior-year level. The improvement was driven by lower catastrophe-related losses, more favorable prior-year development (PYD) and reduced acquisition expenses. The combined ratio improved 170 basis points to 90.1, indicating significantly stronger underwriting performance compared with the year-ago period.
AIG’s cash flow position is strengthening. Net cash provided by operating activities increased to approximately $3.31 billion in 2025 from $3.27 billion in 2024, reflecting improved operational performance. The company also returned $6.8 billion to shareholders in 2025 through share repurchases and dividends. AIG’s quarterly dividend recently reaching 45 cents per share, highlighting its commitment to returning value to shareholders.
Valuation of AIG
AIG currently trades at a forward 12-month P/E ratio of 9.76x, which is higher than the industry average of 8.4x. Given this premium valuation, investors may prefer to remain cautious. The stock currently holds a Zacks Rank #3 (Hold), suggesting that a wait-and-watch approach may be appropriate.
AIG: Key Risks
There are a few factors that investors should keep an eye on.
AIG stock carries a high debt burden, which can hamper its growth initiatives. It ended the fourth quarter with a cash balance of $1.3 billion and a long-term debt of $9 billion (up from $8.8 billion at the end of 2024). Its net debt-to-EBITDA ratio is 1.1%, much higher than the industry average of 0.6%, showing that the company relies heavily on debt. Its ROE of 9.8% is lower than the industry average of 15.5%. We believe that a clear and strategic plan can help support long-term growth.
Key Picks
Some better-ranked stocks in the broader finance space are The Allstate Corporation ALL, BankUnited, Inc. BKU and Cboe Global Markets, Inc. CBOE, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Allstate’s 2026 earnings is pegged at $25.4 per share, which has witnessed seven upward revisions in the past 30 days, with no movement in the opposite direction. ALL beat earnings estimates in each of the trailing four quarters, with the average surprise being 54.3%. The consensus estimate for 2026 revenues is pinned at $72.2 billion, implying 6.4% year-over-year growth.
The Zacks Consensus Estimate for BankUnited’s 2026 earnings is pegged at $4.01 per share, which has witnessed one upward revision in the past 30 days against no movement in the opposite direction. BKU beat earnings estimates in each of the trailing four quarters, with the average surprise being 11.1%. The consensus estimate for 2026 revenues is pinned at $1.2 billion, calling for 8% year-over-year growth.
The Zacks Consensus Estimate for Cboe Global Markets’ 2026 earnings is pegged at $11.36 per share, which has witnessed five upward revisions in the past 30 days0 against no movement in the opposite direction. CBOE beat earnings estimates in each of the trailing four quarters, with the average surprise being 4.4%. The consensus estimate for 2026 revenues is pinned at $2.6 billion, calling for 5% year-over-year growth.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

American International Shows Strong Underwriting Growth: Buy or Hold?

It has been about a month since the last earnings report for Arch Capital Group (ACGL). Shares have lost about 1.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Arch Capital due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Arch Capital Group Ltd. before we dive into how investors and analysts have reacted as of late.
Arch Capital Tops Q4 Earnings Estimates on Solid Underwriting
Arch Capital Group Ltd. reported fourth-quarter 2025 operating income of $2.98 per share, which beat the Zacks Consensus Estimate by 19.7%. The bottom line increased 31.9% year over year. ACGL’s quarterly results benefited from higher premiums in its Insurance segment, improved net investment income, stronger underwriting performance and investment gains. These positives were partially offset by higher taxes.
Behind the Headlines
Gross premiums written increased 1.1% year over year to $4.8 billion. Net premiums earned rose 2.7% year over year to $4.3 billion on higher premiums earned in its Insurance segment. The figure marginally missed the Zacks Consensus Estimate. Pre-tax net investment income increased 7.2% year over year to $434 million, exceeding the Zacks Consensus Estimate of $416.6 million and our estimate of $398.5 million. The increase primarily reflected growth in average invested assets, partially driven by strong operating cash flows.
Operating revenues of $4.7 billion increased 4.4% year over year, driven by higher net premiums earned and net investment income. Revenues surpassed the Zacks Consensus Estimate by 2%. Pre-tax current accident year catastrophic losses for the company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, were $164 million.
Arch Capital’s underwriting income increased 32.3% year over year to $827 million. The combined ratio, representing the percentage of premiums paid out as claims and expenses, improved 440 basis points to 80.6, beating the Zacks Consensus Estimate of 83.0 and our model estimate of 84.5.
Segmental Results
Insurance: Gross premiums written increased 2.3% year over year to $2.5 billion. Net premiums written declined 4% year over year to $1.9 billion, primarily due to the timing of ceded written premium accruals related to the MCE acquisition in the prior-year quarter and changes in business mix reflecting different net-to-gross retention levels. Net premiums written also came in below our estimate of $2.2 billion. Underwriting income of $119 million was nearly four times higher than the year-ago level, though it fell short of our estimate of $168.2 million. The combined ratio improved 450 basis points year over year to 94.0, marginally above the Zacks Consensus Estimate of 93.9.
Reinsurance: Gross premiums written increased marginally by 0.2% year over year to $1.9 billion. Net premiums written declined 5.2% year over year to $1.5 billion, primarily reflecting the non-renewal of a large transaction. The figure was below our estimate of $1.6 billion. Underwriting income totaled $458 million, up 39.6% year over year. The combined ratio improved 600 basis points year over year to 77.0, significantly better than the Zacks Consensus Estimate of 80.4.
Mortgage: Gross premiums written declined 1.5% year over year to $326 million. Net premiums written decreased 3.6% year over year to $267 million, primarily reflecting lower U.S. monthly and single premium volume. Net premiums written exceeded our estimate of $261.7 million. Underwriting income declined 6.4% year over year to $250 million. The combined ratio deteriorated 30 basis points year over year to 13.7, though it remained well below the Zacks Consensus Estimate of 21.2.
Financial Update
Arch Capital exited the quarter with cash and cash equivalents of $993 million, up 1.4% year over year. Total debt was $2.7 billion as of Dec. 31, 2025, slightly higher than the 2024-end level. Book value per share was $65.11 as of Dec. 31, 2025, reflecting an increase of 22.6% from the year-ago figure. Annualized operating return on average common equity expanded 220 basis points year over year to 18.9%.
Net cash provided by operating activities was $1.4 billion in 2025, down 10.7% year over year. During the fourth quarter of 2025, ACGL repurchased $798 million worth of its common shares.
Full-Year Highlights
For 2025, Arch Capital reported an operating income of $9.84 per share, which beat the Zacks Consensus Estimate by 5%. The figure improved 6% year over year. Total revenues of $18.8 billion beat the consensus mark by 0.5% and increased 12.9% year over year. The combined ratio deteriorated 30 basis points to 82.8, though it was better than our model estimate of 84.8.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a flat trend in estimates revision.
VGM Scores
Currently, Arch Capital has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Arch Capital has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Arch Capital belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Allstate (ALL), has gained 3.2% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Allstate reported revenues of $17.27 billion in the last reported quarter, representing a year-over-year change of +3.4%. EPS of $14.31 for the same period compares with $7.67 a year ago.
For the current quarter, Allstate is expected to post earnings of $7.16 per share, indicating a change of +102.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.8% over the last 30 days.
Allstate has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Arch Capital (ACGL) Down 1.7% Since Last Earnings Report: Can It Rebound?

Aon plc AON recently announced a strategic multi-year engagement with VIPR Solutions, a prominent provider of delegated authority technology. The partnership is designed to automate and streamline operations across Aon’s global reinsurance platform, emphasizing the company's commitment to digital transformation and operational efficiency.
This announcement comes on the heels of several other strategic shifts for Aon, including a major leadership reshuffle in North America and a successful pilot for stablecoin insurance premium payments. It highlights Aon’s continued investment in technology to strengthen its risk capital platform and improve operational efficiency across its reinsurance business. While Aon’s total organic revenue growth for Q4 2025 was 5%, its reinsurance solutions division clocked 8% growth.
By leveraging automation and data analytics through VIPR Solutions’ platform, Aon aims to streamline delegated authority processes, enhance data transparency and support faster decision-making for clients. The move comes at a time when demand for data-driven insurance and reinsurance solutions continues to grow.
The Dublin-based global professional services firm, Aon, reported $3.2 billion in free cash flow (FCF) for 2025, reflecting a 14% increase year-over-year. Aon is growing FCF at double-digit rates, which suggests a highly disciplined capital allocation strategy. For fiscal 2026, Aon has guided for an adjusted operating margin expansion of 70-80 basis points. This suggests improving operational efficiency and disciplined cost management. AON’s return on invested capital is 7.9%, above the industry average of 7.6%.
The partnership marks another milestone for VIPR as it expands its presence among major insurance brokers. With this deal, the company now serves four of the world’s top ten reinsurance brokers by revenue.
AON’s Stock Price Performance
Over the past year, AON’s shares have fallen 19.7% compared with the industry’s decline of 42.9%.
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AON’s Zacks Rank & Key Picks
Aon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader finance space are The Allstate Corporation ALL, BankUnited, Inc. BKU, and Cboe Global Markets, Inc. CBOE, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Allstate’s current-year earnings is pegged at $25.38 per share and has witnessed six upward revisions in the past 30 days, with no movement in the opposite direction. ALL beat earnings estimates in each of the trailing four quarters, with the average surprise being 54.3%. The consensus estimate for current-year revenues is pinned at $72.8 billion, implying 7.3% year-over-year growth.
The Zacks Consensus Estimate for BankUnited’s current-year earnings is pegged at $4.01 per share and has witnessed one upward revision in the past 30 days against no movement in the opposite direction. BKU beat earnings estimates in each of the trailing four quarters, with the average surprise being 11.1%. The consensus estimate for current-year revenues is pinned at $1.2 billion, calling for 8% year-over-year growth.
The Zacks Consensus Estimate for Cboe Global Markets’ current-year earnings is pegged at $11.36 per share and has witnessed five upward revisions in the past 30 days, against no movement in the opposite direction. CBOE beat earnings estimates in each of the trailing four quarters, with the average surprise being 4.4%. The consensus estimate for current-year revenues is pinned at $2.6 billion, calling for 5% year-over-year growth.
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BankUnited, Inc. (BKU) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Aon Expands Tech Investments With VIPR Partnership for Reinsurance

In the latest close session, Allstate (ALL) was down 1.2% at $211.62. The stock's change was less than the S&P 500's daily loss of 0.57%. At the same time, the Dow lost 1.61%, and the tech-heavy Nasdaq lost 0.26%.
The insurer's stock has climbed by 3.41% in the past month, exceeding the Finance sector's loss of 2.87% and the S&P 500's loss of 0.15%.
The investment community will be paying close attention to the earnings performance of Allstate in its upcoming release. It is anticipated that the company will report an EPS of $7.12, marking a 101.7% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $17.79 billion, up 5.86% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $25.32 per share and a revenue of $72.85 billion, indicating changes of -27.3% and +7.36%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Allstate. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.64% higher. Currently, Allstate is carrying a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Allstate is currently trading at a Forward P/E ratio of 8.46. This denotes a discount relative to the industry average Forward P/E of 10.64.
We can additionally observe that ALL currently boasts a PEG ratio of 0.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Insurance - Property and Casualty industry had an average PEG ratio of 2.16.
The Insurance - Property and Casualty industry is part of the Finance sector. With its current Zacks Industry Rank of 38, this industry ranks in the top 16% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.