Rating Change #5
(AEG - Get Report)
has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, increase in net income, attractive valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- AEG's very impressive revenue growth greatly exceeded the industry average of 21.6%. Since the same quarter one year prior, revenues leaped by 638.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 21457.5% when compared to the same quarter one year prior, rising from $2.29 million to $494.10 million.
- AEGON NV reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AEGON NV swung to a loss, reporting -$0.08 versus $0.98 in the prior year. This year, the market expects an improvement in earnings ($0.79 versus -$0.08).
AEGON N.V. provides life insurance, pension, and asset management products and services primarily in the Americas, Europe, and Asia. The company has a P/E ratio of 2.6, below the S&P 500 P/E ratio of 17.7. Aegon has a market cap of $10.22 billion and is part of the financial sector and insurance industry. Shares are up 33.1% year to date as of the close of trading on Tuesday.
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