Back to top

Image: Bigstock

Arthur J. Gallagher (AJG) Adds Ballard Benefit to Portfolio

Read MoreHide Full Article
Arthur J. Gallagher & Co. (AJG - Free Report) recently acquired Ballard Benefit Works, Inc. to enhance its employee benefits consulting and brokerage operations in the U.S. The financial details of the transaction, however, remained undisclosed.
 
Established in 2009, Michigan Based, Ballard Benefit Works is a healthcare finance brokerage company. It offers a wide range of brokerage and consulting services as well as employee benefits, to clients across Michigan, Washington D.C. and Florida. The company offers services to not only public and private companies, but also to non-profit organizations. We assume that this buyout will enhance the robust inorganic growth portfolio of the acquirer. Post takeover, Ballard Benefit Works will continue to operate from its current location. 
 
We expect Ballard Benefit’s in-depth expertise, and focus on personalized client service to be highly accretive to the acquirer’s portfolio.
 
Arthur J. Gallagher remains focused on strategic acquisitions that strengthen as well as add capabilities to its portfolio. The company’s spectacular growth is driven by organic sales, acquisition and mergers. Buyouts have always enhanced its portfolio of services. In the second quarter, the company closed nine acquisitions with annualized revenues of over $30.3 million. Furthermore, such deals strengthen its position in retail and wholesale insurance brokerage services and risk management industries.
 
Zacks Rank and Share Price Movement
 
Arthur J. Gallagher & Co. carries a Zacks Rank #3 (Hold). Shares of Arthur J. Gallagher have underperformed the industry  year to date. While Arthur J. Gallagher shares have gained 11.34% the industry has registered an increase of 16.31%. Nonetheless, we expect strategic acquisitions and sustained operational performance to turn the stock around in the near term.
 
 
Stocks to Consider
 
Some better-ranked stocks from the insurance industry are Markel Corporation (MKL - Free Report) , Mercury General Corporation (MCY - Free Report) and First American Financial (FAF - Free Report) .
 
Markel Corporation markets and underwrites specialty insurance products in the United States and internationally. The company delivered positive surprises two out of the last four quarters, with an average beat of 21.06%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Mercury General Corporation engages in writing personal automobile insurance in the United States. The company delivered positive surprises in three of the last four quarters, with an average beat of 1.06%. The company carries a Zacks Rank 1.

First American Financial provides insurance services in 49 states and in the District of Columbia, as well as in Canada, the United Kingdom, Australia, South Korea, and internationally. The company delivered positive surprises in all the last four quarters with an average beat of 12.64%. The company carries a Zacks Rank #2.

4 Surpising Tech Stocks to Keep an Eye on 

4 Surprising Tech Stocks to Keep an Eye on 
 
Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really takes off. 
 
See Stocks Now>>
4 Surprising Tech Stocks to Keep an Eye on 
 
Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really takes off. 
 
See Stocks Now>>
4 Surprising Tech Stocks to Keep an Eye on 
 
Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really takes off. 
 
See Stocks Now>>4 Surprising Tech Stocks to Keep an Eye on4 Surprising Tech Stocks to Keep an Eye on 

Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really takes off.

See Stocks Now>>

Published in