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Here's Why You Should Stay Invested in Brown & Brown (BRO)
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Brown & Brown (BRO - Free Report) is poised for growth on segmental outperformance, strategic buyouts to capitalize on the growing market opportunities and a solid financial position. Effective capital deployment and favorable growth estimates make Brown & Brown stock worth retaining in one’s portfolio.
BRO has a solid track record of beating earnings estimates in the last nine quarters.
Zacks Rank & Price Performance
Brown & Brown currently carries a Zacks Rank #3 (Hold). Year to date, the stock has gained 4.5% compared with the industry’s increase of 2.5%.
Image Source: Zacks Investment Research
Optimistic Growth Projections
The Zacks Consensus Estimate for BRO’s 2022 earnings is pegged at $2.32, indicating a 5.9% increase from the year-ago reported figure on 11.7% higher revenues of $3.4 billion. The consensus estimate for 2023 earnings is pegged at $2.57, indicating a 10.6% increase from the year-ago reported figure on 10.5% higher revenues of $3.8 billion.
Improving new business, solid retention and continued rate increases for most lines of coverage should continue to aid BRO to generate increasing commissions and fees across segments. This, in return, is likely to fuel revenues, which witnessed a five-year annual growth rate of 11.6%.
Being one of the largest insurance brokers, BRO has an impressive inorganic story that helps strengthen the compelling products and service portfolio as well as expand its global reach.
A solid capital position by virtue of sustained strong operational performance continues to aid this Zacks Rank #3 (Hold) insurance broker to make consistent investments in boosting organic growth and margin expansion.
The consensus estimate for 2023 earnings has moved 1.2% north in the past 30 days, reflecting analysts’ optimism.
Solid Dividend History
Banking on strong capital and liquidity position, Brown & Brown has increased dividends in the last 28 years at a five-year CAGR of 8.7%, with a current dividend yield of 0.6%.
This insurance broker’s total shareholder return has outperformed both its peer group and the S&P 500 in the past five years.
The Zacks Consensus Estimate for AJG’s 2022 and 2023 earnings has moved 6.4% and 6.2% north, respectively, in the past 30 days. Arthur J Gallagher delivered a four-quarter average earnings surprise of 8.8%.
The Zacks Consensus Estimate for CINF’s 2022 and 2023 earnings has moved 5.7% and 5.5% north, respectively, in the past 60 days. Cincinnati Financial delivered a four-quarter average earnings surprise of 38.5%.
The Zacks Consensus Estimate for FNF’s 2022 earnings has moved 3.3% north in the past seven days. Fidelity National delivered a four-quarter average earnings surprise of 31.7%.
Year to date, shares of AJG and CINF have gained 6.9% and 20.2%, respectively, while that of FNF has lost 15.4%.
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Here's Why You Should Stay Invested in Brown & Brown (BRO)
Brown & Brown (BRO - Free Report) is poised for growth on segmental outperformance, strategic buyouts to capitalize on the growing market opportunities and a solid financial position. Effective capital deployment and favorable growth estimates make Brown & Brown stock worth retaining in one’s portfolio.
BRO has a solid track record of beating earnings estimates in the last nine quarters.
Zacks Rank & Price Performance
Brown & Brown currently carries a Zacks Rank #3 (Hold). Year to date, the stock has gained 4.5% compared with the industry’s increase of 2.5%.
Image Source: Zacks Investment Research
Optimistic Growth Projections
The Zacks Consensus Estimate for BRO’s 2022 earnings is pegged at $2.32, indicating a 5.9% increase from the year-ago reported figure on 11.7% higher revenues of $3.4 billion. The consensus estimate for 2023 earnings is pegged at $2.57, indicating a 10.6% increase from the year-ago reported figure on 10.5% higher revenues of $3.8 billion.
BRO has a favorable Growth Score of B.
Business Tailwinds
Improving new business, solid retention and continued rate increases for most lines of coverage should continue to aid BRO to generate increasing commissions and fees across segments. This, in return, is likely to fuel revenues, which witnessed a five-year annual growth rate of 11.6%.
Being one of the largest insurance brokers, BRO has an impressive inorganic story that helps strengthen the compelling products and service portfolio as well as expand its global reach.
A solid capital position by virtue of sustained strong operational performance continues to aid this Zacks Rank #3 (Hold) insurance broker to make consistent investments in boosting organic growth and margin expansion.
The consensus estimate for 2023 earnings has moved 1.2% north in the past 30 days, reflecting analysts’ optimism.
Solid Dividend History
Banking on strong capital and liquidity position, Brown & Brown has increased dividends in the last 28 years at a five-year CAGR of 8.7%, with a current dividend yield of 0.6%.
This insurance broker’s total shareholder return has outperformed both its peer group and the S&P 500 in the past five years.
Stocks to Consider
Some better-ranked insurers include Arthur J Gallagher & Co. (AJG - Free Report) , Cincinnati Financial Corporation (CINF - Free Report) and Fidelity National Financial (FNF - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AJG’s 2022 and 2023 earnings has moved 6.4% and 6.2% north, respectively, in the past 30 days. Arthur J Gallagher delivered a four-quarter average earnings surprise of 8.8%.
The Zacks Consensus Estimate for CINF’s 2022 and 2023 earnings has moved 5.7% and 5.5% north, respectively, in the past 60 days. Cincinnati Financial delivered a four-quarter average earnings surprise of 38.5%.
The Zacks Consensus Estimate for FNF’s 2022 earnings has moved 3.3% north in the past seven days. Fidelity National delivered a four-quarter average earnings surprise of 31.7%.
Year to date, shares of AJG and CINF have gained 6.9% and 20.2%, respectively, while that of FNF has lost 15.4%.