Insights

The IAG share price has gained 6% in a month. Is this just the beginning?

Is the insurance company a buy now?
The post The IAG share price has gained 6% in a month. Is this just the beginning? appeared first on The Motley Fool Australia. –

The Insurance Australia Group Ltd (ASX: IAG) share price is in the green in the past month, but could it go higher?

IAG shares have jumped more than 6% since market open on 11 April and are currently trading at $4.63 apiece. That’s up 0.22% on yesterday’s closing price. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 2.27% at the time of writing.

Let’s take a look at the outlook for this insurance company.

Could IAG go higher?

Wilsons analysts have named IAG as a ‘defensive growth’ share that could be a buy in turbulent times.

In a memo to clients, the team predicted the next couple of months will be edgy as rates rise. Wilsons said:

The narrative has changed slightly over the last month with defensives starting to outperform the market. Our picks are healthcare, insurance and telco.

IAG was named specifically by Wilsons. Other defensive shares recommended included CSL Limited (ASX: CSL), Healthco Healthcare and Wellness REIT (ASX: HCW), and Telstra Corporation Ltd (ASX: TLS).

The IAG share price climbed 3.65% in the month of April, outperforming the ASX 200 index. As my Foolish colleague Brooke reported recently, IAG offers a dividend reinvestment plan (DRP). This provides shareholders with the opportunity to receive IAG dividends as new shares instead of cash.

Share price snapshot

Despite falling 10% in the past year, the IAG share price has jumped more than 8% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has slumped 3% in the past year.

IAG commands a market capitalisation of around $11.3 billion based on the current share price.

The post The IAG share price has gained 6% in a month. Is this just the beginning? appeared first on The Motley Fool Australia.

Should you invest $1,000 in IAG right now?

Before you consider IAG, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and IAG wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

4 ‘defensive growth’ ASX shares to buy in turbulent times: Wilsons
Does IAG have a dividend reinvestment plan?
What happened to the IAG share price in April?
How does the IAG dividend compare to QBE?
The IAG share price has lost 10% since February. Is it an opportunity?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has positions in and has recommended Insurance Australia Group Limited and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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