American International Group (AIG) Rising Before The Market Opens

Trade-Ideas LLC identified American International Group (AIG) as a pre-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

American International Group

(

AIG

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified American International Group as such a stock due to the following factors:

  • AIG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $823.9 million.
  • AIG traded 36,392 shares today in the pre-market hours as of 9:28 AM.
  • AIG is up 2.4% today from yesterday's close.

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More details on AIG:

American International Group, Inc. provides insurance products and services for commercial, institutional, and individual customers in the United States, the Asia Pacific, and internationally. The stock currently has a dividend yield of 1.8%. AIG has a PE ratio of 17. Currently there are 5 analysts that rate American International Group a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for American International Group has been 8.3 million shares per day over the past 30 days. American International Group has a market cap of $78.9 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.22 and a short float of 1.2% with 1.26 days to cover. Shares are up 8.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates American International Group as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • AIG, with its decline in revenue, slightly underperformed the industry average of 15.9%. Since the same quarter one year prior, revenues fell by 18.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.31, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
  • 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, despite the company's weak earnings results. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Insurance industry and the overall market, AMERICAN INTERNATIONAL GROUP's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for AMERICAN INTERNATIONAL GROUP is currently extremely low, coming in at 5.22%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -1.79% trails that of the industry average.

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