Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

American Financial Group

(

AFG

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified American Financial Group as such a stock due to the following factors:

  • AFG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.2 million.
  • AFG has traded 1,654 shares today.
  • AFG is trading at a new lifetime high.

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More details on AFG:

American Financial Group, Inc., through its subsidiaries, provides property and casualty insurance products in the United States. The stock currently has a dividend yield of 1.5%. AFG has a PE ratio of 16. Currently there are 3 analysts that rate American Financial Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for American Financial Group has been 251,100 shares per day over the past 30 days. American Financial Group has a market cap of $5.8 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.03 and a short float of 0.4% with 0.88 days to cover. Shares are up 9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates American Financial Group as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 7.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 94.60% to $397.00 million when compared to the same quarter last year. In addition, AMERICAN FINANCIAL GROUP INC has also vastly surpassed the industry average cash flow growth rate of 21.66%.
  • AMERICAN FINANCIAL GROUP INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, AMERICAN FINANCIAL GROUP INC reported lower earnings of $4.97 versus $5.17 in the prior year. This year, the market expects an improvement in earnings ($5.38 versus $4.97).
  • Despite currently having a low debt-to-equity ratio of 0.30, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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