Allstate Corporation - 25% Shorting Opportunity?

10 cze 2022

Following the crash in 2008 Allstate has enjoyed explosive rally with circa 800% gains.
Is is over and are we observing a global correction?

Fundamental indicators:

• Revenue and Profits - demonstrated consistent long-term earnings growth over the past 10 years
  
• Profit margin - quite low with 7% margin
  
• P/E - good value with 10x ratio
  
• Liabilities - debt to equity is considered to be high with 3.19
  

Technical Analysis (Elliott Waves):

• Since 2008 fall we can observe a rapid impulse like movement with waves 1-2 completing in October 2011 followed by a clear wave 3 culminating in February 2020
  
• A sharp drop in 2020 has created a first wave of a global correction in wave 4 which is currently taking shape of a Running Flat
  
• It is likely that the high of April 2022 has completed wave B of a zigzag and since then wave 1 and 2 have already been formed in the upcoming impulse of wave C
  
• The target of wave C and is in the range of $90-$95
  

What do you think about Allstate and its short term prospects?
Also let me know if you would like to see other stocks, indices, Forex or Crypto analysed using Elliott Waves .

Thanks