Jim Cramer Likes This "Boring" Stock

NYSE: AIZ | Assurant Inc. News, Ratings, and Charts

AIZ – Jim Cramer, the host of CNBC’s “Mad Money,” affirmed a positive outlook on Assurant (AIZ) stock due to low volatility and solid fundamentals. Given the fluctuating market trends, investing in a stable stock like AIZ could be rewarding. Read on.

Assurant, Inc. (AIZ) provides lifestyle and housing solutions, protecting and connecting major consumer purchases internationally. The company operates through two segments: Global Lifestyle and Global Housing. Also, AIZ has an ISS Governance QualityScore of 3, indicating low governance risk.

American media personality and the host of CNBC’s “Mad Money” show Jim Cramer stated his preference for AIZ stock due to its low volatility and relatively stable year-to-date performance. Shares of AIZ have gained 10% year-to-date and 11.3% over the past year, outperforming major benchmark indexes.

Here’s what could shape AIZ’s performance in the near term:

Stable Growth Story

AIZ’s revenues increased at CAGRs of 5% and 8.1% over the past three years and past five years, respectively. The company’s EBITDA rose at a rate of 14.2% per annum over the past three years, while its net income improved at a 63.4% CAGR over this period.

Furthermore, net income increased at a rate of 22.6% per annum over the past five years. EPS rose at CAGRs of 29.9% and 4.9% over the past three and five years, respectively.

In addition, the company’s trailing-12-month revenues and net income increased 6.9% and 201% year-over-year, respectively. AIZ’s trailing-12-month EBITDA improved 13.6% from the same period last year, while trailing-12-month EPS rose 25.2% year-over-year. Moreover, trailing-12-month levered free cash flow increased 62.2% year-over-year.

Low Valuation

AIZ’s forward non-GAAP PEG multiple of 0.76 is 26.2% lower than the industry average of 1.03. In addition, the stock’s forward EV/EBITDA and EV/Sales ratios of 9.07 and 0.97 are lower than the industry averages of 9.70 and 2.55, respectively.

Also, AIZ is currently trading 0.88x its forward sales, 68.6% lower than the industry average of 2.78x.

Consensus Rating and Price Target Indicate Potential Upside

Each of the three Wall Street analysts that rated AIZ has rated it Buy. The 12-month median price target of $213.33 indicates a 23.9% potential upside from the last closing price of $169.85. The price targets range from a low of $205.00 to a high of $220.00.

Impressive POWR Ratings Component Grades

According to our proprietary POWR Ratings system, AIZ has a B grade for Sentiment and Momentum. The POWR ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.

Analysts expect the company’s revenues and EPS to improve 3.5% and 7.4% year-over-year to $2.63 billion and $3.21, respectively, in the fiscal second quarter (ending June). This justifies the Sentiment grade.

In addition, the stock is currently trading above its 50-day moving average of $167.19, indicating an uptrend and justifying the Momentum grade.

Of the nine stocks in the Insurance – Accident & Supplemental industry, AIZ is ranked #2.

Beyond what I’ve stated above, view AIZ ratings for Growth, Stability, Value, and Quality here.

Bottom Line

Given the bearish market trends and surging volatility, investing in low beta stocks like AIZ can help investors hedge their portfolios against the market risks. AIZ has a 0.56 beta. Given its solid financials and stable growth prospects, AIZ could be an ideal investment.

How Does Assurant (AIZ) Stack Up Against its Peers?

While AIZ has a C rating in our proprietary rating system, one might want to consider looking at its industry peer, Unum Group (UNM), which has a B (Buy) rating.


AIZ shares were trading at $171.63 per share on Tuesday morning, up $1.78 (+1.05%). Year-to-date, AIZ has gained 11.00%, versus a -20.76% rise in the benchmark S&P 500 index during the same period.


About the Author: Aditi Ganguly


Aditi is an experienced content developer and financial writer who is passionate about helping investors understand the do’s and don'ts of investing. She has a keen interest in the stock market and has a fundamental approach when analyzing equities. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
AIZGet RatingGet RatingGet Rating
UNMGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Is the Bear Market Over???

The S&P 500 (SPY) quickly dispensed with 2 key levels of resistance on Wednesday following statements by Fed Chairman Powell. Now more people are contemplating that the 2022 bear market may be over and time to get more bullish. 40 year investment veteran Steve Reitmeister weighs in on this timely topic in his new commentary. Spoiler Alert: he is not impressed and still believes that the bears have the upper hand. Read on below for the full story...

:  |  News, Ratings, and Charts

5 Stocks With Juicy Dividends to Buy Now

A possible recession caused by the Fed’s continued interest rate hikes is expected to weigh on investor sentiment and keep the market volatile in the upcoming months. Therefore, investors looking to limit risks and add stability to their portfolios could buy Sysco (SYY), Hillenbrand (HI), Ennis (EBF), Sisecam Resources (SIRE), and Genie Energy (GNE), as they have a history of consistent dividend payments. Read on…

:  |  News, Ratings, and Charts

3 Stocks That Can Help Ease Your Recession Fears

Major macroeconomic headwinds have heightened recessionary fears in the economy. Moreover, the Fed will likely keep raising rates next year as well. Amid fears of a downturn, fundamentally strong stocks PepsiCo (PEP), Humana (HUM), and Weis Markets (WMK) might be ideal investments based on their stable and consistent dividend history. Read on...

:  |  News, Ratings, and Charts

1 Energy Stock to Stay Bullish on in 2023

Despite widespread market uncertainties, energy company Marathon Petroleum (MPC) recently increased its dividend payouts by almost 30%. It has gained more than 90% in 2022, and Wall Street analysts expect it to rally further shortly. Therefore, investors might consider staying bullish on MPC in 2023. Keep reading…

:  |  News, Ratings, and Charts

3 Stocks That Can Help Ease Your Recession Fears

Major macroeconomic headwinds have heightened recessionary fears in the economy. Moreover, the Fed will likely keep raising rates next year as well. Amid fears of a downturn, fundamentally strong stocks PepsiCo (PEP), Humana (HUM), and Weis Markets (WMK) might be ideal investments based on their stable and consistent dividend history. Read on...

Read More Stories

More Assurant Inc. (AIZ) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All AIZ News