With shares of American International Group (NYSE:AIG) trading around $37.67, is AIG an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for a Stock’s Movement
AIG engages in the insurance product and service business for individual, commercial and institutional customers worldwide. As the largest player in this industry, the company has the resources to influence the entire market, as well as the presence to attend to people and businesses across the globe. If the business is executed correctly, the sheer reach of this company can have a significant effect on their bottom line.
T = Technicals on the Stock Chart are Mixed
AIG’s long term price chart is an excellent display of what the company has experienced. In 2008, AIG was on the verge of collapse. The company saw its stock price take a nosedive during these times but has since recovered slightly. Since late 2011, the stock has been seeing a pattern of higher highs and higher lows. However, there is a significant resistance zone in the $43-$45 range and again at the $50-$55 range. So, AIG’s stock price looks to be trending higher, but there are a couple of selling zones up ahead.