Trade-Ideas: American International Group (AIG) Is Today's Post-Market Leader Stock

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 or Stephanie Link.

Trade-Ideas LLC identified American International Group ( AIG) as a post-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 $487.4 million.
  • AIG is up 2.4% today from today's close.

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More details on AIG:

American International Group, Inc. provides insurance products and services for the commercial, institutional, and individual customers in the United States and internationally. The company operates in two segments: AIG Property Casualty, and AIG Life and Retirement. The stock currently has a dividend yield of 0.8%. AIG has a PE ratio of 9.6. Currently there are 9 analysts that rate American International Group a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for American International Group has been 8.9 million shares per day over the past 30 days. American International Group has a market cap of $72.1 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.32 and a short float of 1% with 1.53 days to cover. Shares are down 3.9% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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 solid stock price performance, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • 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. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • Net operating cash flow has significantly increased by 88.48% to $2,275.00 million when compared to the same quarter last year. In addition, AMERICAN INTERNATIONAL GROUP has also vastly surpassed the industry average cash flow growth rate of -56.04%.
  • AMERICAN INTERNATIONAL GROUP has improved earnings per share by 34.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMERICAN INTERNATIONAL GROUP reported lower earnings of $4.27 versus $9.30 in the prior year. This year, the market expects an improvement in earnings ($4.36 versus $4.27).
  • The gross profit margin for AMERICAN INTERNATIONAL GROUP is rather low; currently it is at 20.68%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 14.36% is above that of the industry average.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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