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Pfizer, Facebook and AIG Report Earnings but Only Two Are Buys

Stocks in this article: PFE FB AIG

AIG Chart AIG data by YCharts


AIG engages in the provision of insurance products and services for the commercial, institutional, and individual customers in the United States and internationally. The company operates in three segments: Chartis, SunAmerica Financial Group and Aircraft Leasing.

AIG is forecast to show lower first-quarter earnings after the market closes on Thursday.

The average estimate is currently 86 cents a share, a decline of 79 cents (47.3%) from $1.65 during the equivalent quarter last year. Estimates from analysts range from a low of 75 cents up to the highest estimate of $1.04 per share.

Don't give as much weight to the earnings per share number as the forward guidance. AIG could miss or beat but the stock will act based on where the market believes AIG will be at the end of this year and into next.

I like AIG's stock almost as much as the book Greenberg wrote. The company climbed out of the 2009 abyss, paid back the U.S. government for its financial support during the crash and appears destined to continue appreciating. It's not too late to gain exposure during buying dips (it rarely makes sense to chase any stock higher) for a longer-term investment.

52-Week Range: $27.18 to $42.66

Price To Book: 0.6

Analysts like what they see in the company, with 12 of the 22 analysts covering AIG giving a buy recommendation. Ten analysts rate it a hold and there's not a single sell rating to be found. Overall, analysts have called this one correctly based on the share price during the last 12 months.

The shares have accelerated higher, with a one-year return of 30%. The average analyst target price for AIG is $43.03. Don't become overly surprised to watch the price target exceeded if investors like what they hear on Thursday.

AIG has a rising 60-day moving average trending above a rising 200-day moving average. In other words, the chart is displaying a strong and robust bull trend. Short-sellers are not finding AIG an attractive short with only 1.5% of the float shorted. With short interest so small, we can't expect a short-seller squeeze. But if AIG continues on its current path, the shares will continue higher without one.

AIG Revenue Quarterly Chart AIG Revenue Quarterly data by YCharts

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

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