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Daytona Beach, Florida-based Brown & Brown, Inc. (BRO) markets and sells insurance products and services. Valued at $29.1 billion by market cap, the company also provides risk management, employee benefit administration, and managed health care services.
Shares of this leading insurance brokerage firm have outperformed the broader market considerably over the past year. BRO has gained 39.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.5%. In 2024, BRO stock is up 43.8%, surpassing SPX’s 17.8% rise on a YTD basis.
Zooming in further, BRO’s outperformance looks less pronounced compared to the SPDR S&P Insurance ETF (KIE). The exchange-traded fund has gained about 31.5% over the past year. Moreover, BRO’s gains on a YTD basis outshine the ETF’s 22.1% returns over the same time frame.
On Jul. 22, shares of Brown & Brown closed up marginally after reporting its Q2 earnings results. Its adjusted EPS of $0.93 surpassed Wall Street expectations of $0.87. The company’s revenue was $1.2 billion, topping Wall Street forecasts of $1.1 billion.
For the current fiscal year, ending in December, analysts expect BRO’s EPS to grow 31% to $3.68 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 13 analysts covering BRO stock, the consensus is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, two “Moderate Buys,” five “Holds,” and one “Moderate Sell.”
This configuration is more bullish than a month ago, with four analysts suggesting a “Strong Buy.”
On Jul. 23, RBC Capital analyst Scott Heleniak maintained a “Buy” rating on BRO with a price target of $110, implying a potential upside of 7.6% from current levels.
The mean price target of $104.91 represents a 2.6% premium to BRO’s current price levels. The Street-high price target of $112 suggests an upside potential of 9.6%.
On the date of publication, Neha Panjwani 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.
