With the market indexes plunging below key moving averages, risk management has taken center stage on Wall Street. And that has lifted insurance stocks into the spotlight. One stock is that of global insurance broker Aon, which has secured a spot on IBD Leaderboard as it weathers the storm to stay in buy range.
Sporting a 97 Composite Rating out of a possible 99, Aon stock joins peers that rank among the top-rated insurance brokers. Industry peers include Baldwin Insurance, Brown & Brown and Ryan Specialty, the IBD Stock Of The Day on March 12. The group as a whole ranks No. 24 out of the 197 industries Investor's Business Daily tracks.
Aon In Demand Among Top Funds
Headquartered in Dublin with clients in more than 120 countries, Aon provides risk management insight and solutions in two key business segments: Risk Capital and Human Capital.
Working with clients across industries ranging from health care, manufacturing, retail, finance, telecom and beyond, Aon purports to offer solutions to help identify, assess and manage financial, operational and other types of risk.
Aon stock made the latest list of new buys by the best mutual funds. Ryan Specialty, Brown & Brown, as well as Arthur Gallagher and Willis Towers Watson, also made the cut. In total, 10 stocks from the broad insurance sector made this monthly screen.
Other signs of demand for Aon include a 1.3 up/down volume ratio and three quarters of rising fund ownership. Plus, 78 funds with an A+ rating from IBD own shares of Aon.
Aon Stock Weathers Market Storm
While market indexes get hit with a deluge of selling, Aon stock trades above its 50-day moving average and within buy range from its February breakout.
After clearing what would be a 395.33 entry in an early-stage base last month, the insurance broker notched a new high before pulling back. But showing resilience, Aon has continued to hold tough right around the initial entry, ending Monday's session in buy range.
As seen on the weekly chart, the relative strength line continues to rise.
While Aon and other insurance stocks like Ryan and Brown & Brown continue to shine, risk management and portfolio protection should remain a priority for investors. Knowing both how to buy stocks and when to sell stocks is crucial to handling this market correction and simultaneously getting ready to profit during the next uptrend.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
