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Valued at a market cap of $29.7 billion, Brown & Brown, Inc. (BRO) operates in the insurance sector. Based in Daytona Beach, Florida, the company provides a diverse range of insurance products and services through its Retail, National Programs, Wholesale Brokerage, and Services segments.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Brown & Brown fits this criterion perfectly, exceeding the mark. Brown & Brown is recognized as the sixth-largest independent insurance brokerage in the U.S., known for its innovative risk management solutions and strong industry relationships.
While the insurance company has dipped 1.8% from its 52-week high of $106.02, achieved earlier this month, over the past three months, its shares have gained 15.6%, eclipsing the broader S&P 500 Index's ($SPX) 3.7% increase during the same period.
Longer term, BRO has gained 46.4% on a YTD basis, which outpaces SPX’s 18.1% rise. Moreover, shares of Brown & Brown have surged 43.3% over the past 52 weeks, compared to SPX's 26.6% returns over the same time frame.
BRO has been trading above its 200-day and 50-day moving averages since last year despite a few fluctuations, indicating a bullish price trend.
Brown & Brown has outperformed due to significant premium rate increases across insurance lines, strategic acquisitions, and strong organic revenue growth driven by higher demand and operational efficiency. Moreover, the stock surged over 5% following its Q2 earnings release on Jul. 22 due to a better-than-expected adjusted EPS of $0.93, driven by higher commissions and fees and a doubling of investment income from rising interest rates. The company's stronger-than-expected revenue of $1.2 billion further boosted investor confidence.
Also, its rival, Arthur J. Gallagher & Co. (AJG), has underperformed BRO, with a gain of 30.2% over the past 52 weeks and 33.2% on a YTD basis.
Despite BRO’s strong price action, analysts are cautiously optimistic about the stock's prospects. The stock has a consensus rating of “Moderate Buy” from the 14 analysts in coverage, and the mean price target of $105.17 is a premium of just 1% to current levels.
On the date of publication, Sohini Mondal 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.
