American International Group Inc (AIG): Today's Featured Insurance Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

American International Group ( AIG) pushed the Insurance industry higher today making it today's featured insurance winner. The industry as a whole closed the day down 0.5%. By the end of trading, American International Group rose 70 cents (2%) to $35.54 on light volume. Throughout the day, 17 million shares of American International Group exchanged hands as compared to its average daily volume of 25 million shares. The stock ranged in a price between $34.56-$35.66 after having opened the day at $34.61 as compared to the previous trading day's close of $34.84. Other companies within the Insurance industry that increased today were: Genworth Financial ( GNW), up 8.9%, Kingsway Financial Services ( KFS), up 2.8%, CoreLogic ( CLGX), up 2.7%, and American Equity Investment Life Holding Com ( AEL), up 1.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

American International Group, Inc. 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. American International Group has a market cap of $51.74 billion and is part of the financial sector. The company has a P/E ratio of 2.3, below the S&P 500 P/E ratio of 17.7. Shares are down 0.7% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate American International Group a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates American International Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and feeble growth in the company's earnings per share.

On the negative front, State Auto Financial ( STFC), down 4.1%, Citizens ( CIA), down 3.9%, Triple-S Management Corporation ( GTS), down 3.7%, and First Acceptance Corporation ( FAC), down 3.3%, were all laggards within the insurance industry with Aflac ( AFL) being today's insurance industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF ( KIE) while those bearish on the insurance industry could consider Proshares Short Financials ( SEF).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.

null

More from Markets

Jim Cramer: Schlumberger Predicted the Rise in Oil Prices

Jim Cramer: Schlumberger Predicted the Rise in Oil Prices

Jim Cramer on Zillow's New Business: Buying and Selling Homes

Jim Cramer on Zillow's New Business: Buying and Selling Homes

Jim Cramer on the Markets: It's Natural to Have Some Profit Taking

Jim Cramer on the Markets: It's Natural to Have Some Profit Taking

Video: As Trade Worries Subside, Expect a 'Relief Rally' in Stocks

Video: As Trade Worries Subside, Expect a 'Relief Rally' in Stocks

Stocks Trade Mixed Amid Progress on U.S.-China Trade; Dow Turns Lower

Stocks Trade Mixed Amid Progress on U.S.-China Trade; Dow Turns Lower