11 Best Undervalued Stocks to Invest in According to Reddit

3. The Allstate Corporation (NYSE:ALL)

Number of Hedge Fund Holders: 62

Forward P/E: ~8.9x

The Allstate Corporation (NYSE:ALL) is one of the Best Undervalued Stocks to Invest in According to Reddit. On September 18, the company announced estimated catastrophe losses for August of $213 million or $168 million, after-tax. The catastrophe losses for the month included 10 events with ~70% of the losses associated with three wind and hail events. The total catastrophe losses for July and August came in at $397 million or $313 million, after-tax.

Elsewhere, The Allstate Corporation (NYSE:ALL) had a healthy operating and financial performance in Q2 2025 while executing its growth strategies. Apart from the strong financial results, The Allstate Corporation (NYSE:ALL) is creating shareholder value by increasing growth and proactively managing investments and capital. Notably, total policies in force rose to 208 million, 4% higher compared to the last year, led by Protection Plans. Notably, the personal property-liability policies have started to grow because of expanded distribution, new products, and increased marketing. The $77.4 billion investment portfolio was able to garner $754 million of income in Q2 2025, while lowering the overall portfolio risk.

TimesSquare Capital Management, an equity investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“In the Financials sector we tend to avoid banks that face credit deterioration or rising deposit costs, preferring either asset managers, specialized insurance companies, or financial technology providers. On the plus side there was an 8% gain from The Allstate Corporation (NYSE:ALL), which provides personal property and casualty insurance, life insurance, as well as retirement and investment products. Revenues and earnings were higher than anticipated, propelled by underlying loss ratio beats across Homeowners and Auto insurance as well as lower than expected catastrophe losses. Notably, the company highlighted that it expects policies-in-force to grow in 2025. As its shares climbed, we trimmed our position.”