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Why You Should Hold onto Brown & Brown (BRO) Stock Right Now
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Shares of Brown & Brown Inc. (BRO - Free Report) gained 19.5% over a one-year period. Though the stock underperformed Zacks categorized Insurance Broker industry’s gain of 22.6%, the Zacks Rank #3 (Hold) insurance broker’s compelling portfolio, impressive growth through organic and inorganic initiatives, as well as solid capital position bode well for the long term. The company also witnessed estimates for 2018 moving north over the last one month. The expected long-term earnings growth is currently pegged at 9%.
The insurer makes strategic acquisitions and mergers to expand its operations. Such business moves have helped Brown & Brown gain significant international exposure via operations in the United Kingdom, Hamilton, Bermuda and George Town, Cayman Islands.
Brown & Brown aims to diversify its offerings of national programs for balanced growth. In 2017 and beyond, the company will be implementing a new is being created to pay for increased activities. The company anticipates this program to fuel inorganic growth in the future through focus on customer retention and new businesses.
Banking on its strong capital position, the company has increased its dividend for the straight 22nd quarter and has $375 million worth share buyback program under its authorization. In fact, the company’s dividend yield is better than the industry average. These make the stock an attractive pick for yield seeking investor.
The company estimates EBITDAC to contract for next few quarters owing to additional investment in technology. The insurer estimates margin in relation to investment in technology to be between 35-40 bps in 2017 and envisions margin to be between 300 and 350 bps in 2017.
Stocks to Consider
Some better-ranked stocks from the insurance industry include American Financial Group, Inc. (AFG - Free Report) , Everest Re Group, Ltd. and Progressive Corp (PGR - Free Report) .
Progressive offers personal and commercial Property and Casualty (P&C) insurance, and other specialty P&C insurance and related services, primarily in the U.S. Shares of the company gained 12.23% year to date. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
American Financial offers P&C insurance products in the U.S. Shares of the company gained 7.29% year to date. The stock has a Zacks Rank #1
Everest Re offers reinsurance and insurance products. Shares of the company gained 8.04% year to date. The stock carries a Zacks Rank #2 (Buy).
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Why You Should Hold onto Brown & Brown (BRO) Stock Right Now
Shares of Brown & Brown Inc. (BRO - Free Report) gained 19.5% over a one-year period. Though the stock underperformed Zacks categorized Insurance Broker industry’s gain of 22.6%, the Zacks Rank #3 (Hold) insurance broker’s compelling portfolio, impressive growth through organic and inorganic initiatives, as well as solid capital position bode well for the long term. The company also witnessed estimates for 2018 moving north over the last one month. The expected long-term earnings growth is currently pegged at 9%.
The insurer makes strategic acquisitions and mergers to expand its operations. Such business moves have helped Brown & Brown gain significant international exposure via operations in the United Kingdom, Hamilton, Bermuda and George Town, Cayman Islands.
Brown & Brown aims to diversify its offerings of national programs for balanced growth. In 2017 and beyond, the company will be implementing a new is being created to pay for increased activities. The company anticipates this program to fuel inorganic growth in the future through focus on customer retention and new businesses.
Banking on its strong capital position, the company has increased its dividend for the straight 22nd quarter and has $375 million worth share buyback program under its authorization. In fact, the company’s dividend yield is better than the industry average. These make the stock an attractive pick for yield seeking investor.
The company estimates EBITDAC to contract for next few quarters owing to additional investment in technology. The insurer estimates margin in relation to investment in technology to be between 35-40 bps in 2017 and envisions margin to be between 300 and 350 bps in 2017.
Stocks to Consider
Some better-ranked stocks from the insurance industry include American Financial Group, Inc. (AFG - Free Report) , Everest Re Group, Ltd. and Progressive Corp (PGR - Free Report) .
Progressive offers personal and commercial Property and Casualty (P&C) insurance, and other specialty P&C insurance and related services, primarily in the U.S. Shares of the company gained 12.23% year to date. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
American Financial offers P&C insurance products in the U.S. Shares of the company gained 7.29% year to date. The stock has a Zacks Rank #1
Everest Re offers reinsurance and insurance products. Shares of the company gained 8.04% year to date. The stock carries a Zacks Rank #2 (Buy).
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>