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Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified American Equity Investment Life as such a stock due to the following factors:
- AEL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.0 million.
- AEL has traded 11,198 shares today.
- AEL is trading at a new lifetime high.
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More details on AEL:
American Equity Investment Life Holding Company, through its subsidiaries, operates in the insurance business in 50 states and the District of Columbia. It underwrites fixed annuities, including fixed index annuities and fixed rate annuities, as well as single premium immediate annuities. The stock currently has a dividend yield of 0.7%. AEL has a PE ratio of 15.8. Currently there are 2 analysts that rate American Equity Investment Life a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for American Equity Investment Life has been 554,200 shares per day over the past 30 days. American Equity Investment Life has a market cap of $1.9 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.94 and a short float of 6.7% with 7.14 days to cover. Shares are down 2.5% year-to-date as of the close of trading on Thursday.
rates American Equity Investment Life as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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 exceeded that of the S&P 500, but is less than that of the Insurance industry average. The net income increased by 20.7% when compared to the same quarter one year prior, going from $56.18 million to $67.82 million.
- AMERICAN EQTY INVT LIFE HLDG has improved earnings per share by 13.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, AMERICAN EQTY INVT LIFE HLDG increased its bottom line by earning $3.48 versus $0.88 in the prior year. For the next year, the market is expecting a contraction of 44.0% in earnings ($1.95 versus $3.48).
- The revenue fell significantly faster than the industry average of 24.3%. Since the same quarter one year prior, revenues fell by 20.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.41, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
- You can view the full American Equity Investment Life Ratings Report.