Aegon NV is a turn around candidate
This morning I added Aegon NV (AEG) to the Barchart Van Meerten New High portfolio as a turnaround opportunity. Aegon N.V. is an international insurance group which writes life and health insurance and offers related pension, savings and investment products in Europe, North America and the Caribbean. The Company's other lines of business include property and casualty insurance and financial services.
AEG is paying off their bail out from the Dutch government and will be a turn around opportunity much like our banks and insurance stocks.
The stock came to my attention when screening for stocks hitting new highs on Barchart. The 18 new highs and price appreciation of 19.73% in the last month has earned the stock a 100% Barchart technical buy signal. With a climbing Relative Strength Index of 80.95% the stock trades around 7.19 which is well ahead of its 50 day moving average of 6.21.
Wall Street brokerages look for revenues to hold steady - this is an insurance stock but predict a turn around in EPS of 711.10% this year and an annual EPS growth of 74.30% a year for at least the next 5 years.
The general investor as measured on Motley Fool agrees with the CAPS members voting 190 to 22 that the stock will beat the market. The All Stars are even more upbeat with a vote of 85 to 1.
As the world economy in general and the European economy begins to recover, you can expect the financial stocks; especially insurance companies to prosper.
Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs. He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.
Through Marketocracy Capital Management you can have a Separately Managed Account that mirrors his Barchart Van Meerten New High portfolio.