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Why Should You Hold Brown and Brown (BRO) Stock in Portfolio
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Brown & Brown (BRO - Free Report) is well-poised for growth on the strength of its segmental performance, strategic buyouts, strong financial position, effective capital deployment and favorable growth estimates. These factors make BRO stock worth retaining in one’s portfolio.
Brown & Brown has a decent track record of beating the Zacks Consensus Estimate for earnings in three of the last four quarters. This largest insurance broker’s adjusted earnings have witnessed a five-year CAGR of 19%.
BRO’s total shareholder return has outperformed both its peer group and the S&P 500 in the last five years. The ten-year average total shareholders' return was 597%.
Zacks Rank & Price Performance
Brown & Brown currently carries a Zacks Rank #3 (Hold). In the last six months, the stock has lost 3.9% against the industry’s increase of 9.1%.
Image Source: Zacks Investment Research
Optimistic Growth Projections
The Zacks Consensus Estimate for Brown & Brown’s 2023 earnings is pegged at $2.53 per share, suggesting growth of 13.1% year over year on 12.6% higher revenues of $4 billion.
Business Tailwinds
Improving commissions and fees across all its segments will continue to drive Brown and Brown’s top line. The top line witnessed a five-year annual growth rate of 12%. Increasing new business, strong retention and continued rate increases for most lines of coverage should boost commissions and fees for BRO.
Brown & Brown has an impressive inorganic story that helps strengthen its compelling products and service portfolio, expands global reach and accelerates growth rate. Strategic buyouts also help the insurance broker to capitalize on growing market opportunities.
Its sustained solid operational excellence aids BRO in making continuous investments to boost organic growth and margin expansion.
A solid capital position has supported BRO in increasing dividends over the last 29 years, making it an attractive pick for yield-seeking investors.
Allianz’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 12.96%. In the last six-months period, the insurer has gained 12.2%.
The Zacks Consensus Estimate for ALIZY’s 2023 earnings has moved 0.8% north in the past 30 days. The Zacks Consensus Estimate for Allianz’s 2023 earnings per share indicates year-over-year increases of 47.2%.
MGIC Investment’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 36.34%. In the last six-months period, MTG stock has gained 1.5%.
The Zacks Consensus Estimate for MTG’s 2023 earnings has moved 0.4% north in the past 30 days.
Kinsale Capital’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 15.16%. In the last six-months period, KNSL has gained 10.7%.
The Zacks Consensus Estimate for KNSL’s 2023 earnings implies a respective year-over-year rise of 22.4%.
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Why Should You Hold Brown and Brown (BRO) Stock in Portfolio
Brown & Brown (BRO - Free Report) is well-poised for growth on the strength of its segmental performance, strategic buyouts, strong financial position, effective capital deployment and favorable growth estimates. These factors make BRO stock worth retaining in one’s portfolio.
Brown & Brown has a decent track record of beating the Zacks Consensus Estimate for earnings in three of the last four quarters. This largest insurance broker’s adjusted earnings have witnessed a five-year CAGR of 19%.
BRO’s total shareholder return has outperformed both its peer group and the S&P 500 in the last five years. The ten-year average total shareholders' return was 597%.
Zacks Rank & Price Performance
Brown & Brown currently carries a Zacks Rank #3 (Hold). In the last six months, the stock has lost 3.9% against the industry’s increase of 9.1%.
Image Source: Zacks Investment Research
Optimistic Growth Projections
The Zacks Consensus Estimate for Brown & Brown’s 2023 earnings is pegged at $2.53 per share, suggesting growth of 13.1% year over year on 12.6% higher revenues of $4 billion.
Business Tailwinds
Improving commissions and fees across all its segments will continue to drive Brown and Brown’s top line. The top line witnessed a five-year annual growth rate of 12%. Increasing new business, strong retention and continued rate increases for most lines of coverage should boost commissions and fees for BRO.
Brown & Brown has an impressive inorganic story that helps strengthen its compelling products and service portfolio, expands global reach and accelerates growth rate. Strategic buyouts also help the insurance broker to capitalize on growing market opportunities.
Its sustained solid operational excellence aids BRO in making continuous investments to boost organic growth and margin expansion.
A solid capital position has supported BRO in increasing dividends over the last 29 years, making it an attractive pick for yield-seeking investors.
Stocks to Consider
Some better-ranked stocks from the insurance industry are Allianz SE (ALIZY - Free Report) , MGIC Investment Corporation (MTG - Free Report) and Kinsale Capital Group, Inc. (KNSL - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allianz’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 12.96%. In the last six-months period, the insurer has gained 12.2%.
The Zacks Consensus Estimate for ALIZY’s 2023 earnings has moved 0.8% north in the past 30 days. The Zacks Consensus Estimate for Allianz’s 2023 earnings per share indicates year-over-year increases of 47.2%.
MGIC Investment’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 36.34%. In the last six-months period, MTG stock has gained 1.5%.
The Zacks Consensus Estimate for MTG’s 2023 earnings has moved 0.4% north in the past 30 days.
Kinsale Capital’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 15.16%. In the last six-months period, KNSL has gained 10.7%.
The Zacks Consensus Estimate for KNSL’s 2023 earnings implies a respective year-over-year rise of 22.4%.