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American International Group (AIG) Gains As Market Dips: What You Should Know

Zacks Equity Research

American International Group (AIG) closed at $55.41 in the latest trading session, marking a +1.02% move from the prior day. This move outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.19%.

Coming into today, shares of the insurer had lost 3.47% in the past month. In that same time, the Finance sector gained 1.48%, while the S&P 500 gained 3.61%.

Wall Street will be looking for positivity from AIG as it approaches its next earnings report date. In that report, analysts expect AIG to post earnings of $1.05 per share. This would mark year-over-year growth of 408.82%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.13 per share and revenue of $49.25 billion, which would represent changes of +338.46% and +3.64%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AIG. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 2.92% higher within the past month. AIG is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, AIG currently has a Forward P/E ratio of 10.69. Its industry sports an average Forward P/E of 10.54, so we one might conclude that AIG is trading at a premium comparatively.

We can also see that AIG currently has a PEG ratio of 1.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AIG's industry had an average PEG ratio of 1.21 as of yesterday's close.

The Insurance - Multi line industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow AIG in the coming trading sessions, be sure to utilize Zacks.com.


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