Is Brown & Brown Stock Underperforming the S&P 500?

Core Viewpoint - Brown & Brown, Inc. (BRO) is a significant player in the insurance brokerage industry, with a market cap of $26.8 billion, but has recently experienced notable stock declines and underperformance compared to the S&P 500 Index [1][2][3]. Company Overview - BRO is based in Daytona Beach, Florida, and offers a range of insurance products and services, including risk management and employee benefit administration [1]. - The company is classified as a large-cap stock, reflecting its substantial market presence and influence within the industry [2]. Market Performance - BRO's stock has decreased by 38.2% from its 52-week high of $125.68, reached on April 1, and has declined 18.6% over the past three months, while the S&P 500 Index gained 5.4% in the same period [3]. - Over a six-month period, BRO shares fell by 29.8%, and over the past 52 weeks, they dipped by 28.9%, significantly underperforming the S&P 500's gains of 14.1% and 12.4%, respectively [4]. Recent Financial Results - In Q3, BRO reported an adjusted EPS of $1.05, exceeding Wall Street's expectation of $0.90, and revenue of $1.6 billion, surpassing forecasts of $1.5 billion [5]. - Following the Q3 results announcement, BRO's shares closed down more than 6% in the subsequent trading session [5]. Competitive Landscape - Arthur J. Gallagher & Co. (AJG) has outperformed BRO, with AJG experiencing a 27.7% decline over six months and 19.8% over the past year [6]. - Analysts maintain a cautious outlook on BRO, with a consensus "Hold" rating from 18 analysts and a mean price target of $97.43, indicating a potential upside of 25.5% from current levels [6].