How Is Brown & Brown's Stock Performance Compared to Other Insurance Stocks?

Company Overview - Brown & Brown, Inc. is based in Daytona Beach, Florida, and operates in the insurance products and services market both in the U.S. and internationally, with a market cap of $30.9 billion [1] - The company is categorized as a large-cap stock, reflecting its substantial size and influence in the insurance brokerage industry [2] Stock Performance - Brown & Brown's stock has experienced a significant decline, dropping 27.7% from its all-time high of $125.68 on April 3, and 14.8% over the past three months, underperforming the iShares U.S. Insurance ETF's slight dip of 33 basis points during the same period [3] - Over the longer term, the stock has plummeted 10.9% in 2025 and 11.9% over the past 52 weeks, notably underperforming the ETF's gains of 4.4% in 2025 and 3% over the past year [4] Recent Financial Results - Following the release of mixed Q2 results on July 28, Brown & Brown's stock fell 10.4% in a single trading session, despite net revenues increasing 9.1% year-over-year to $1.3 billion, exceeding expectations [5] - The adjusted EPS for the quarter rose 10.8% year-over-year to $1.03, surpassing consensus estimates by 4% [5] Profitability Concerns - Investor concerns have been raised due to a 520 basis points contraction in profit before tax margin to 24.2%, down from 29.4% in the previous year, and a 450 basis points contraction in GAAP-based EBITDAC margin to 33.8% [6] - The company has also underperformed compared to its peer, Arthur J. Gallagher & Co., which saw 2% gains year-to-date and a 2.7% dip over the past 52 weeks [6] Analyst Outlook - Despite recent performance issues, analysts maintain a positive outlook, with a consensus rating of "Moderate Buy" among 18 analysts covering the stock [7] - The mean price target for Brown & Brown is set at $111.50, indicating a potential upside of 22.7% from current price levels [7]