Why American International Group (AIG) is a Top Momentum Stock for the Long-Term

American International Group (AIG), a global insurance organization, is highlighted as a stock with strong momentum, holding a Zacks #3 (Hold) rank with a B Momentum Style Score and B VGM Score. The company's shares have risen 5.8% over the past four weeks, supported by five upward revisions to fiscal 2025 earnings estimates in the last 60 days, which increased the Zacks Consensus Estimate to $6.46 per share. AIG also boasts an average earnings surprise of 9.5%, suggesting it warrants investor consideration.

Analysis

American International Group (AIG) is positioned as a top momentum stock, currently holding a Zacks #3 (Hold) rank complemented by strong Style Scores, specifically a B for both VGM and Momentum. The stock has demonstrated recent positive price action, with shares appreciating 5.8% over the past four weeks, aligning with its favorable momentum profile. This indicates a positive short-term trend that momentum investors typically seek.

Underpinning this positive momentum are recent upward revisions to earnings estimates for fiscal 2025. Five analysts have increased their estimates in the last 60 days, pushing the Zacks Consensus Estimate up by $0.13 to $6.46 per share. AIG also boasts a consistent average earnings surprise of +9.5%, suggesting a history of outperforming analyst expectations.

While AIG's Zacks Rank is a #3 (Hold), its top-tier Momentum and VGM Style Scores (both B) are significant. The Zacks methodology suggests that combining a Zacks Rank of #1 or #2 with Style Scores of A or B maximizes returns, but even a #3 (Hold) with A or B scores indicates potential upside. This combination suggests AIG warrants attention despite not being a 'Strong Buy' ranked stock.

Key Decisions for Investors

• Monitor AIG closely for continued positive earnings estimate revisions and price momentum, as its strong Style Scores complement its Zacks #3 (Hold) rank.
• Consider AIG for momentum-oriented portfolios, given its B Momentum Style Score and recent 5.8% share price increase over four weeks, which aligns with its positive earnings estimate revisions.
• Conduct further due diligence on AIG's fundamental outlook and competitive landscape, especially given its #3 (Hold) Zacks Rank, to confirm long-term investment suitability beyond its momentum characteristics.