Trade-Ideas: American Financial Group (AFG) Is Today's New Lifetime High Stock

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 $20.9 million.
  • AFG has traded 2,290 shares today.
  • AFG is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in AFG with the Ticky from Trade-Ideas. See the FREE profile for AFG NOW at Trade-Ideas

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 19. 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 295,300 shares per day over the past 30 days. American Financial Group has a market cap of $6.4 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.84 and a short float of 0.5% with 1.13 days to cover. Shares are up 22% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. 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 15.6%. Since the same quarter one year prior, revenues slightly increased by 5.5%. 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 89.14% to $331.00 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 -13.67%.
  • 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. 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.
  • AMERICAN FINANCIAL GROUP INC's earnings per share declined by 44.5% in the most recent quarter compared to 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 ($5.48 versus $4.97).
  • Despite currently having a low debt-to-equity ratio of 0.34, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Trade Talks, Walmart, Nvidia, Amazon and Uber - 5 Things You Must Know

Trade Talks, Walmart, Nvidia, Amazon and Uber - 5 Things You Must Know

Market Jitters Ease on Fresh U.S.-China Trade Talks

Market Jitters Ease on Fresh U.S.-China Trade Talks

Rewind: Jim Cramer on the Market Selloff, Macy's, Constellation and Canopy

Rewind: Jim Cramer on the Market Selloff, Macy's, Constellation and Canopy

Loncar China BioPharma ETF Makes Nasdaq Debut

Loncar China BioPharma ETF Makes Nasdaq Debut

Stocks Close Lower But Trim Losses With Late Rebound

Stocks Close Lower But Trim Losses With Late Rebound