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American International Group, Inc. (AIG) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of American International Group (AIG - Free Report) ? Shares have been on the move with the stock up 4.1% over the past month. The stock hit a new 52-week high of $65.16 in the previous session. American International Group has gained 13.3% since the start of the year compared to the -2.9% move for the Zacks Finance sector and the 6.8% return for the Zacks Insurance - Multi line industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 16, 2022, American International Group reported EPS of $1.58 versus consensus estimate of $1.14 while it beat the consensus revenue estimate by 18.45%.
For the current fiscal year, American International Group is expected to post earnings of $5.32 per share on $47.07 billion in revenues. This represents a 4.1% change in EPS on a -1.84% change in revenues. For the next fiscal year, the company is expected to earn $6.21 per share on $48.99 billion in revenues. This represents a year-over-year change of 16.65% and 4.07%, respectively.
Valuation Metrics
American International Group may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
American International Group has a Value Score of A. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 10.8X. On a trailing cash flow basis, the stock currently trades at 5.9X versus its peer group's average of 8.1X. Additionally, the stock has a PEG ratio of 1.21. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, American International Group currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if American International Group meets the list of requirements. Thus, it seems as though American International Group shares could have potential in the weeks and months to come.
How Does AIG Stack Up to the Competition?
Shares of AIG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The Hartford Financial Services Group, Inc. (HIG - Free Report) . HIG has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of B.
Earnings were strong last quarter. The Hartford Financial Services Group, Inc. beat our consensus estimate by 32.89%, and for the current fiscal year, HIG is expected to post earnings of $6.90 per share on revenue of $14.88 billion.
Shares of The Hartford Financial Services Group, Inc. have gained 5.3% over the past month, and currently trade at a forward P/E of 10.81X and a P/CF of 9.12X.
The Insurance - Multi line industry may rank in the bottom 76% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for AIG and HIG, even beyond their own solid fundamental situation.
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American International Group, Inc. (AIG) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of American International Group (AIG - Free Report) ? Shares have been on the move with the stock up 4.1% over the past month. The stock hit a new 52-week high of $65.16 in the previous session. American International Group has gained 13.3% since the start of the year compared to the -2.9% move for the Zacks Finance sector and the 6.8% return for the Zacks Insurance - Multi line industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 16, 2022, American International Group reported EPS of $1.58 versus consensus estimate of $1.14 while it beat the consensus revenue estimate by 18.45%.
For the current fiscal year, American International Group is expected to post earnings of $5.32 per share on $47.07 billion in revenues. This represents a 4.1% change in EPS on a -1.84% change in revenues. For the next fiscal year, the company is expected to earn $6.21 per share on $48.99 billion in revenues. This represents a year-over-year change of 16.65% and 4.07%, respectively.
Valuation Metrics
American International Group may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
American International Group has a Value Score of A. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 10.8X. On a trailing cash flow basis, the stock currently trades at 5.9X versus its peer group's average of 8.1X. Additionally, the stock has a PEG ratio of 1.21. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, American International Group currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if American International Group meets the list of requirements. Thus, it seems as though American International Group shares could have potential in the weeks and months to come.
How Does AIG Stack Up to the Competition?
Shares of AIG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The Hartford Financial Services Group, Inc. (HIG - Free Report) . HIG has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of B.
Earnings were strong last quarter. The Hartford Financial Services Group, Inc. beat our consensus estimate by 32.89%, and for the current fiscal year, HIG is expected to post earnings of $6.90 per share on revenue of $14.88 billion.
Shares of The Hartford Financial Services Group, Inc. have gained 5.3% over the past month, and currently trade at a forward P/E of 10.81X and a P/CF of 9.12X.
The Insurance - Multi line industry may rank in the bottom 76% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for AIG and HIG, even beyond their own solid fundamental situation.