In the latest trading session, American International Group (AIG - Free Report) closed at $56.48, marking a -1.38% move from the previous day. This move lagged the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.44%.
Prior to today's trading, shares of the insurer had gained 7.95% over the past month. This has outpaced the Finance sector's gain of 3.52% and the S&P 500's gain of 4% in that time.
Investors will be hoping for strength from AIG as it approaches its next earnings release, which is expected to be August 7, 2019. In that report, analysts expect AIG to post earnings of $1.17 per share. This would mark year-over-year growth of 11.43%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.99 per share and revenue of $49.25 billion. These totals would mark changes of +326.5% and +3.64%, respectively, from last year.
Any recent changes to analyst estimates for AIG should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% higher. AIG is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that AIG has a Forward P/E ratio of 11.48 right now. Its industry sports an average Forward P/E of 11.43, so we one might conclude that AIG is trading at a premium comparatively.
It is also worth noting that AIG currently has a PEG ratio of 1.04. 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. The Insurance - Multi line industry currently 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 group has a Zacks Industry Rank of 99, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.