Based in New York, American International Group, Inc. (AIG) is a global leader in commercial and personal insurance solutions. Valued at $51.49 billion by market cap, the company provides a wide range of property casualty insurance, life insurance, retirement solutions, and other financial services globally. These offerings include products and services that help businesses and individuals protect their assets, manage risks, and provide for retirement security.
Shares of this insurance major have outperformed the broader market considerably over the past year. AIG has gained 39.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.1%. In 2024 alone, AIG stock is up 14.5%, surpassing SPX’s 10.4% rise on a YTD basis.
Zooming in further, AIG’s outperformance is also apparent compared to the KBW Property & Casualty Insurance Invesco ETF (KBWP). The exchange-traded fund has gained about 26.5% over the past year. However, KBWP’s 16% returns on a YTD basis outshine the stock’s gains over the same time frame.
On May 1, AIG reported its Q1 results, with adjusted revenue of $12.47 billion surpassing Wall Street estimates of $12.04 billion. Also, its adjusted EPS came in at $1.77, beating Street forecasts of $1.66. The stock rose by 3% in the trading session after its earnings report was released.
For the current fiscal year, ending in December, analysts expect AIG’s EPS to grow 4.3% to $7.08 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 17 analysts covering AIG stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, two “Moderate Buys,” and six “Holds.”
This configuration is slightly more bullish than three months ago, with eight suggesting a “Strong Buy.”
Recently, HSBC analyst Vikram Gandhi downgraded AIG stock from “Buy” to “Hold” with a price target of $86, implying a potential upside of 10.9% from current levels.
The mean price target of $84.12 represents an 8.4% premium to AIG’s current price levels. The Street-high price target of $92 suggests an upside potential of 18.6%.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
