These 3 Insurance Stocks are Crushing the Market (BRO, PGR, AJG)

Core Viewpoint - The insurance sector has demonstrated resilience amidst recent market volatility, outperforming other sectors and leading the market higher [2][17]. Industry Performance - The insurance brokerage industry ranks in the top 4% of the Zacks Industry Rank, indicating strong performance relative to other sectors [2]. - Insurance stocks, including Progressive, Brown and Brown, and Arthur J. Gallagher and Co., have shown impressive long-term stock performances and secure business models [3][11]. Company Highlights Progressive - Progressive has compounded at an annual rate of 18.8% over the past 15 years, significantly increasing investor returns [4]. - The company has a Zacks Rank 2 (Buy) rating, with earnings estimates experiencing upward revisions [4]. - Progressive's forward earnings multiple is 18.6x, below the market average, with EPS expected to grow 23.8% annually over the next three to five years, resulting in a PEG ratio of 0.78 [5]. Brown and Brown - Brown and Brown has compounded at an annual rate of 17% since 1995, outperforming the market average and providing substantial returns to investors [8]. - The company also holds a Zacks Rank 2 (Buy) rating, with expected sales growth of 10% this year and 7% next year, and EPS forecasted to grow 30.6% this year [9]. - Brown and Brown's forward earnings multiple is 27.2x, above the market average [9]. Arthur J. Gallagher and Co. - Arthur J. Gallagher and Co. is the world's largest property/casualty third-party claims administrator and ranks fourth globally among insurance brokers by revenue [11]. - The company has a Zacks Rank 1 (Strong Buy) rating, with a cash position that has grown 45% year-over-year to $1.4 billion, providing options for dividends, buybacks, or acquisitions [12]. - The forward earnings multiple for Arthur J. Gallagher and Co. is 27.8x, with a dividend yield of 0.85% and an average annual dividend increase of 7% over the last five years [13]. Sales and Earnings Estimates - Zacks Consensus Estimates for sales indicate a current quarter estimate of $2.78 billion, with year-over-year growth of 13.15% [14]. - Earnings estimates for the current quarter are projected at $2.31, reflecting a year-over-year growth of 15.50% [16]. Final Thoughts - The strong performance of the insurance industry is expected to continue into year-end, with stocks showing relative strength and potential for breakout [17][18].