Is American International Group Stock Underperforming the Dow?
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Valued at $47.1 billion by market cap, American International Group, Inc. (AIG) is a global leader in the insurance and financial services industry. Headquartered in New York City, the company provides a comprehensive range of property-casualty insurance, life insurance, retirement solutions, and other financial products, enabling individuals and businesses worldwide to manage risk and secure their financial futures.
Companies valued at over $10 billion are often classified as “large-cap stocks,” a distinction that American International Group exemplifies through its scale, resilience, and leadership in the global insurance and financial services industry. AIG’s substantial contributions to risk management and economic security underscore its stability and capacity to thrive in a dynamic and competitive international market.
American International Group shares are down 8.4% from their 52-week high of $80.83, achieved on May. 10. Over the past three months, the stock has gained 1.7%, underperforming the broader Dow Jones Industrials Average’s ($DOWI) 8.8% gains over the same time frame.
Over the longer term, AIG stock has risen 13.1% over the past 52 weeks and gained 9.3% on a YTD basis, trailing the Dow's YTD rally of 17.8% and its 22.5% return over the past year.
AIG's recent bearish trend is evident as the stock has been trading below its 50-day and 200-day moving averages.
On Nov. 4, American International released its Q3 earnings, with shares seeing a marginal increase following the announcement. Its Q3 net income attributable to common shareholders came in at $459 million, or $0.71 per diluted share, a significant decline from $2 billion, or $2.81 per diluted share, reported in the same period last year. However, total net investment income showed strength, rising 14% year over year to $973 million, compared to $856 million in Q3 2023.
American International faces competition from major firms like Arthur J. Gallagher & Co. (AJG). AJG has outperformed AIG, delivering a 29.8% return on a YTD basis and 21.1% over the past year.
Despite its recent weak price performance, analysts maintain a positive outlook on American International Group. The stock has a consensus "Moderate Buy" rating from 18 analysts, with a mean price target of $84.72, suggesting a potential 14.4% upside from its current level.
On the date of publication, Rashmi Kumari 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.