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Why American International Group (AIG) Could Be a Top Value Stock Pick

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Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; American International Group, Inc. (AIG - Free Report) .

American International Group in Focus

AIG may be an interesting play thanks to its forward PE of 10.6, its P/S ratio of 0.9, and its decent dividend yield of 2.5%. These factors suggest that American International Group is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that AIG has decent revenue metrics to back up its earnings.

American International Group, Inc. PE Ratio (TTM)

But before you think that American International Group is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 11.1% in the past 30 days, thanks to six upward revisions in the past one months compared to none lowers.

This estimate strength is actually enough to push AIG to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

So really, American International Group is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

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