The Allstate Corporation‘s ALL Allstate Protection Plans, a division of ALL, recently announced the acquisition of Kingfisher. The acquired party is a pioneering company in optimizing the life cycle of smart devices. This strategic move strengthens Allstate’s position in the mobile industry as Kingfisher’s expertise in repair, trade-in and upgrade solutions aligns well with Allstate’s mission to deliver innovative, consumer-friendly protection plans.
This move bodes well for ALL as this acquisition is expected to expand Allstate’s ability to serve mobile carriers, manufacturers and retailers worldwide. Founded in 2016, Kingfisher has been making waves in the mobile circular economy, offering sustainable solutions that meet growing consumer demand for flexible device ownership and protection. This acquisition will also help meet the mobile industry’s increasing focus on environmental responsibility by facilitating the circulation of new and pre-owned devices.
With major partnerships already in place with global carriers such as Telenor, Softbank, Three and T-Mobile, Allstate’s enhanced offering through Kingfisher will give the company an even stronger presence in the mobile industry. An improved offering will allow the company to expand its footprint and attract new customers, ultimately leading to improved revenue in the future. This acquisition will lead to improved performance of the Protection Services segment, whose revenue increased 12.7% year-on-year in the second quarter of 2024. The strength of Allstate Protection Plans bodes well for the company.
Backed by Allstate’s global resources, Kingfisher solutions are poised to reach billions of users, delivering both environmental and economic benefits. Allstate’s acquisition of Kingfisher is a forward-looking investment that is in line with market trends and is expected to drive growth for ALL.
Price performance
Allstate shares are up 16% over the past six months, compared with the industry’s 14.9% gain.
Image source: Zacks Investment Research
ALL’s Zacks Rank and Key Picks
ALL currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the financial world are Community Financial System, Inc. CBU, WisdomTree, Inc. GEW and American Express Company AXP. While Community Financial and WisdomTree have a Zacks Rank #1 (Strong Buy), American Express currently has a Zacks Rank #2 (Buy). The complete list of today’s Zacks #1 Rank stocks can be found here.
Community Financial’s earnings beat expectations in two of the last four quarters and missed the target twice, with an average surprise of 0.83%. The Zacks Consensus Estimate for CBU’s 2024 earnings indicates an improvement of 1.8%, while the consensus estimate for revenues implies a growth of 12.8% from the prior year’s corresponding figures. The consensus figure for CBU’s 2024 earnings has moved north by 2.4% over the past 30 days.
The Zacks Consensus Estimate for WisdomTree’s 2024 earnings indicates year-over-year growth of 51.4%. In the past two months, WT has witnessed one upward revision to estimates, while none has been in the opposite direction. Over the past four quarters, the company met and beat earnings estimates twice, with an average surprise of 5.9%.
American Express’s results exceeded expectations in three of the trailing four quarters and exceeded the line once, with an average surprise of 7.72%. The Zacks Consensus Estimate for AXP’s 2024 earnings suggests an improvement of 17.2%, while the consensus estimate for revenue implies 9% growth from the corresponding figures from a year ago. AXP’s consensus 2024 earnings figure has shifted north by 0.5% over the past 30 days.
Want the latest recommendations from Zacks Investment Research? Today you can download the 7 best stocks for the next 30 days. Click to get this free report
American Express Company (AXP): Free Stock Analysis Report
The Allstate Corporation (ALL): Free Stock Analysis Report
Community Financial System, Inc. (CBU): Free Stock Analysis Report
WisdomTree, Inc. (WT): Free stock analysis report
To read this article on Zacks.com, click here.
Zacks Investment Research
