AIG Gets Near-Term Boost

Following its third-consecutive dismal quarterly earnings miss, multi-line insurance giant American International Group (AIG) look to be rebounding from its 52-week low this past Monday, when shares fell to around $19 per share.  On better-than-expected second quarter economic growth in the U.S., AIG has bounded up over 4% to the $20.80 range near mid-day Thursday.

This is likely the first bit of good news the company has seen in awhile.  Ahead of the company’s 180% negative earnings surprise in its June quarter, 13 analysts had downwardly revised estimates on the firm, and 15 analysts had lowered expectations for fiscal 2008.  Since the earnings report, analysts have been dormant.

Even with the slight price appreciation this morning, shares of AIG are still down over 40% year-to-date.  Currently, the Zacks Ranks is #3 (Hold), the Zacks consensus for the third quarter is 56 cents per share, and the fiscal year number stands at -36 cents per share.

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