Bull’s Eye Report: American International Group (AIG)

While the juggernaut looks to move up, use a tight stop loss nonetheless.

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
American International Group AIG Multi-Line Insurance 9.4 +6.83% $37.44


Why We Like The Stock:

American International Group (NYSE:AIG) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Multi-Line Insurance companies like AIG, such as Loews Corp. (NYSE:L), Hartford Financial Services (NYSE:HIG), Genworth Financial (NYSE:GNW), and American Financial Group (NYSE:AFG), have been performing well thus far in 2013.

Since its November lows, AIG has been in a steady uptrend, making higher highs and higher lows along the way. Currently, the stock has pulled back and bounced right off of its 50-day moving average. AIG has an immediate upside to its March highs around $39.60, which is a substantial short-term gain from current prices. We would keep a short leash with a stop at $37.44. Any lower, and AIG breaks its attractive technical set-up for this trade. But, at current prices, AIG is definitely worth a look.

 

We Would Be Buyers:

At the current price (~$37.90).

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Company Profile:

American International Group (AIG) is an international insurance company, serving customers in more than 130 countries. AIG companies serve commercial, institutional and individual customers through property-casualty networks of any insurer. In addition, AIG companies are providers of life insurance and retirement services. AIG’s segments include Chartis, SunAmerica Financial Group (SunAmerica), Aircraft Leasing and Other Operations. On Feb.1, 2011 and Aug. 18, 2011, it divested its Japan-based life insurance subsidiaries, AIG Star Life Insurance Company Ltd. (AIG Star) and AIG Edison Life Insurance Company, and Nan Shan Life Insurance Company, Ltd. (Nan Shan). On Oct. 7, 2011, ILFC completed the acquisition of AeroTurbine. AeroTurbine is a providers of aircraft engines, aircraft and engine parts and supply chain solutions. On Dec. 3, 2012, the Company’s life and retirement business, AIG Life and Retirement, acquired Woodbury Financial Services, Inc.

 

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

 

Disclosure:

At the time of publication the editor and affiliated companies own the following positions:None

Note: Positions may be bought or sold while this publication is in circulation without notice.

American International Group – Last 3 Months

 Bulls Eye Report: American International Group (AIG)

American International Group – Last 12 Months

 Bulls Eye Report: American International Group (AIG)

American International Group – Last 5 Years

 Bulls Eye Report: American International Group (AIG)


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