Core Insights - Brown & Brown, Inc. (BRO) shares are trading at a discount compared to the Zacks Brokerage Insurance industry, with a forward price-to-earnings multiple of 16.83X, lower than the industry average of 17.64X, the Finance sector's 17.22X, and the Zacks S&P 500 Composite's 23.51X [1] - The company has a market capitalization of $27.11 billion, with an average trading volume of 2.8 million shares over the last three months [1] Financial Performance - Brown & Brown's shares have declined by 25% over the past year, slightly better than the industry's decline of 26% [2] - The Zacks Consensus Estimate projects a 9.2% increase in earnings per share and a 23.7% increase in revenues for 2026 compared to 2025 estimates [4] - Earnings have grown by 21.5% over the past five years, surpassing the industry average growth of 15.2% [4] - The company has outperformed earnings estimates in three of the last four quarters, with an average surprise of 8.65% [4] Analyst Sentiment - The average price target for BRO, based on short-term targets from 16 analysts, is $95.81 per share, indicating a potential upside of 21.19% from the last closing price [5] Revenue Drivers - Commissions and fees, the primary revenue component, are benefiting from new business growth, strong retention rates, and ongoing rate increases across most coverage lines [10] - The company achieved its intermediate annual revenue goal of $4 billion, doubling its revenue in the last five years [10] - Strategic acquisitions, totaling 713 since 1993, have expanded BRO's market reach and product offerings [7][11] Operational Strengths - Brown & Brown maintains a strong liquidity position and an improving leverage ratio, ensuring effective cash deployment for acquisitions, capital expenditures, and shareholder returns through dividend increases [12] - The company has a robust dividend history, increasing dividends for the last 30 years at a five-year CAGR of 8.7% [13] Challenges - International expansion into markets like the UK, Bermuda, and the Cayman Islands introduces complexities, including regulatory changes and currency fluctuations, which could pressure margins [14] - Profitability metrics show that Brown & Brown's return on equity is 13.6%, significantly below the industry average of 24.8%, and return on invested capital is 6.7% compared to the industry's 8.6% [15] Conclusion - The combination of new business growth, strong retention, rate increases, strategic acquisitions, and a solid dividend history positions the company favorably for future growth [16] - However, risks associated with international expansion, regulatory challenges, and profitability pressures may impact near-term performance [16]

Core Insights - Arthur J. Gallagher & Co. (AJG) shares are trading at a discount compared to the Zacks Brokerage Insurance industry, with a price-to-book value of 2.85X, lower than the industry average of 3.95X, the Finance sector's 4.28X, and the Zacks S&P 500 Composite's 8.48X [1] - AJG has a market capitalization of $66.32 billion, with an average trading volume of 1.6 million shares over the last three months [1] Performance Comparison - AJG shares have declined by 10.5% over the past year, outperforming the industry, which saw a decline of 25.8% [3] Growth Projections - The Zacks Consensus Estimate for AJG's 2025 earnings per share indicates a year-over-year increase of 6.6%, with revenues projected at $13.81 billion, reflecting a 21.4% year-over-year improvement [4] - For 2026, earnings per share and revenues are expected to increase by 24.6% and 20.4%, respectively, from the 2025 estimates [4] - AJG's earnings grew by 20.4% over the last five years, surpassing the industry average of 15.2% [5] Growth Strategy - AJG is pursuing both organic and inorganic growth globally, with strong retention and improving renewal premiums [8] - The company expects margin stability near 21% in 2025, driven by Risk Management and Brokerage segments [8] - AJG's acquisition pipeline remains robust, enhancing international revenue share and supporting dividends [8] Revenue and Market Position - AJG's revenues are geographically diversified, with international operations contributing about one-third of total revenues [12] - Since January 1, 2002, AJG has acquired 776 companies, with revenue growth rates for 2025 acquisitions ranging from 5% to 17.5% [13] - In the third quarter, AJG completed five new mergers, contributing approximately $40 million in estimated annualized revenues, bringing the year-to-date total to over $3.4 billion [13] Shareholder Returns - AJG has a strong capital position, allowing for dividend hikes and share repurchases, with an 8.3% increase in dividends in the first quarter of 2025 [14] - The company has experienced a six-year CAGR of 7.6% in dividends from 2020 to 2025 [14] Conclusion - AJG benefits from solid retention, improving renewal premiums, and both organic and inorganic growth, particularly in the Risk Management and Brokerage segments [15] - The company's strong capital position and impressive dividend history, along with solid growth projections, are positive indicators for future performance [15]

Core Insights - Brown & Brown, Inc. (BRO) shares are trading at a discount compared to the Zacks Brokerage Insurance industry, with a forward price-to-earnings multiple of 16.72X, lower than the industry average of 17.49X, the Finance sector's 17.07X, and the Zacks S&P 500 Composite's 23.46X [1] - The company has a market capitalization of $26.77 billion, with an average trading volume of 2.8 million shares over the last three months [1] Performance Comparison - Brown & Brown shares have decreased by 23.8% over the past year, which is better than the industry's decline of 27.4% [3] - Earnings have grown by 21.5% in the past five years, surpassing the industry average growth of 15.2% [5] Growth Projections - The Zacks Consensus Estimate for Brown & Brown's 2025 earnings per share indicates a year-over-year increase of 11.4%, with revenues projected at $5.93 billion, reflecting a year-over-year improvement of 23.4% [4] - For 2026, earnings per share and revenues are expected to increase by 10.2% and 23.5%, respectively, compared to 2025 estimates [4] Analyst Sentiment - The average price target for BRO, based on short-term targets from 14 analysts, is $97.43 per share, suggesting a potential upside of 25.4% from the last closing price [6] Revenue Drivers - Commissions and fees, the main revenue component, benefit from new business, strong retention, and rate increases across most coverage lines [11] - The company has achieved its intermediate annual revenue goal of $4 billion, doubling its revenue in the last five years [11] Strategic Acquisitions - Brown & Brown has made 713 acquisitions since 1993, enhancing its market reach and product offerings [12] - The Quintes acquisition was noted as the largest transaction in 2024 [12] Financial Strength - The company maintains a strong liquidity position with an improving leverage ratio, ensuring effective cash deployment into acquisitions and shareholder returns [13] - Brown & Brown has a robust dividend history, increasing dividends for the last 30 years at a five-year CAGR of 8.7% [14]

Core Insights - Brown & Brown, Inc. (BRO) shares are trading at a discount compared to the Zacks Brokerage Insurance industry, with a forward price-to-earnings multiple of 19.69X, lower than the industry average of 19.79X and the Zacks S&P 500 Composite's 23.39X [1] - The company has a market capitalization of $29.98 billion and an average trading volume of 3.3 million shares over the last three months [1] Financial Performance - Brown & Brown's shares have declined by 11.9% over the past year, while the industry has seen a larger decline of 19.4% [3] - The Zacks Consensus Estimate for Brown & Brown's 2025 earnings per share indicates an 8.3% year-over-year increase, with revenues projected at $5.83 billion, reflecting a 21.3% year-over-year improvement [3] - Earnings have grown by 21.5% over the past five years, surpassing the industry average growth of 15.2% [4] Growth Strategy - The company has completed 702 acquisitions since 1993, leveraging strategic buyouts to capture market opportunities and enhance its product and service portfolio [8][12] - Brown & Brown has met its intermediate annual revenue goal of $4 billion, doubling its revenue in the last five years [11] Dividend and Capital Position - The company has a strong dividend history, having raised dividends for 30 consecutive years, with a five-year compound annual growth rate (CAGR) of 8.7% from 2019 to 2024 [8][14] - Brown & Brown maintains a robust liquidity position and an improving leverage ratio, ensuring strong cash conversion and effective cash deployment for acquisitions and shareholder dividends [13] Analyst Sentiment - The average price target for BRO, based on short-term estimates from 14 analysts, is $111.50 per share, suggesting a potential upside of 22.6% from the last closing price [9] - Positive analyst sentiment and favorable growth estimates position the company well for future growth [15]