Summary
-
Brown & Brown (BRO) has shown strong technical indicators, including an 88% technical buy signal and a 43.15% gain over the past year.
The Barchart Brief: Your FREE insider update on the biggest news stories and investing trends, delivered midday The company operates in four segments: Retail, Programs, Wholesale Brokerage, and Services, offering diverse insurance products and services globally.
Analysts have mixed opinions: 5 strong buys, 3 buys, 6 holds, 1 sell, with price targets ranging from $97 to $128.
Despite positive momentum, the stock is considered volatile and speculative; investors should use a disciplined approach with diversification and stop-loss strategies.
The Chart of the Day belongs to the insurance brokerage stock Brown & Brown (BRO) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 2/5 the stock gained 12.25%.
BRO Price vs Daily Moving Averages
Brown & Brown, Inc. markets and sells insurance products and services in the United States, Canada, Ireland, the United Kingdom, and internationally. It operates through four segments: Retail, Programs, Wholesale Brokerage, and Services. The Retail segment provides property and casualty, employee benefits insurance products, personal insurance products, specialties insurance products, risk management strategies, loss control survey and analysis, consultancy, and claims processing services. It serves commercial, public and quasi-public entities, professional, and individual customers. The Programs segment offers professional liability and related package insurance products for dentistry, legal, eyecare, insurance, financial, physicians, real estate title professionals, as well as supplementary insurance products related to weddings, events, medical facilities, and cyber liabilities. This segment also provides public entity-related and specialty programs through a network of independent agents; and program management services for insurance carrier partners. The Wholesale Brokerage segment markets and sells excess and surplus commercial and personal lines insurance through independent agents and brokers. The Services segment offers third-party claims administration and medical utilization management services in the workers' compensation and all-lines liability arenas, Medicare Set-aside, Social Security disability, Medicare benefits advocacy, and claims adjusting services. Brown & Brown, Inc. was founded in 1939 and is headquartered in Daytona Beach, Florida.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 88% technical buy signals
- 43.32+ Weighted Alpha
- 43.15% gain in the last year
- .86 - 60 month Beta
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 16 new highs and up 13.58% in the last month
- Relative Strength Index 83.38%
- Technical support level at $118.45
- Recently traded at $119.87 with 50 day moving average of $106.64
Fundamental Factors:
- Market Cap $33.81 billion
- P/E 30.34
- Dividend yield .47%
- Revenue expected to grow 8.79% this year and another 8.40% next year
- Earnings estimated to increase 8.87% this year and an additional 8.98% next year
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts issued 5 strong buy, 3 buy, 6 hold and 1 sell opinion on the stock with price targets between $97 and $128 with a consensus of $116
- Value Line has an average rating on the stock with a price target of $106 for a 10% loss
- CFRAs MarketScope rates the stock a hold with a price target of $117
- MorningStar thinks the stock is 26% over valued
- Of the 465 investors following the stock on Motley Fool 409 think the stock will beat the market and 56 thinks it won't
- 8,870 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
