American Equity Investment Life Holding Company (AEL) Buy or Sell Stock Guide

Last updated: Apr 12, '19

Are you looking for the analysis of American Equity Investment Life Holding Company (AEL) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 5 reasons to buy and 2 reasons to sell AEL stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about AEL stock:

  • Is AEL a buy or a sell?
  • Should I sell or hold AEL stock today?
  • Is AEL a good buy / investment?
  • What are AEL analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy AEL stock:

1. AEL forward dividend yield is 1.04%, higher than the industry (0.92%) and sector (0.91%) forward dividend yields. See AEL forward dividend chart.

2. AEL forward P/E ratio is 6.80, and it’s low compared to its industry peers’ P/E ratios. See AEL forward P/E ratio chart.

3. AEL PEG ratio (P/E adjusted for growth) is 0.80, and it’s low compared to its industry peers’ PEG ratios. See AEL PEG chart.

4. AEL average analyst rating is Buy. See AEL analyst rating chart.

5. AEL average analyst price target ($33.36) is above its current price ($28.32). See AEL price target chart.

Now that you understand the bull case, let’s look at the reasons to sell AEL stock (i.e., the bear case):

1. AEL Price/Sales ratio is 1.60, and it’s high compared to its industry peers’ P/S ratios. See AEL forward Price/Sales ratio chart.

2. AEL short interest (days to cover the shorts) ratio is 4.17. The stock garners more short interest than the average industry, sector or S&P 500 stock. See AEL short interest ratio chart.

Now let's look at the key statistics for AEL:

Metrics AEL
Price $28.82
Average Price Target / Upside $33.36 / 15.73%
Average Analyst Rating Buy
Industry Insurance - Life
Sector Financial Services
Number of Employees 554
Market Cap $2.58B
Forward P/E Ratio 7.12
Price/Book Ratio 1.67
PEG 0.76
Revenue (TTM) $1.55B
YoY Quarterly Revenue Growth N/A
Profit Margin 29.62%

What are your thoughts on AEL?

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