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Aon (AON) Soars 4.0%: Is Further Upside Left in the Stock?
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Aon (AON - Free Report) shares rallied 4% in the last trading session to close at $328.69. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.7% loss over the past four weeks.
Aon shares climbed last Friday as investors shifted away from richly valued AI and technology stocks and into companies with more stable earnings amid ongoing economic uncertainty and expectations that interest rates will remain higher for longer. Insurance brokers, including Aon, benefited from this rotation as their recurring fee-based business models and resilient cash flows make them attractive during uncertain market conditions. The stock also likely received support from quarter-end portfolio rebalancing, as institutional investors adjusted their holdings before the close of the quarter, lifting the broader insurance brokerage sector.
This insurance brokerage is expected to post quarterly earnings of $3.77 per share in its upcoming report, which represents a year-over-year change of +8%. Revenues are expected to be $4.27 billion, up 2.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Aon, the consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AON going forward to see if this recent jump can turn into more strength down the road.
Aon belongs to the Zacks Insurance - Brokerage industry. Another stock from the same industry, Ryan Specialty Group (RYAN - Free Report) , closed the last trading session 8.2% higher at $38.88. Over the past month, RYAN has returned 13.1%.
For Ryan Specialty, the consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $0.62. This represents a change of -6.1% from what the company reported a year ago. Ryan Specialty currently has a Zacks Rank of #4 (Sell).
View the Zacks #1 Rank List
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Aon (AON) Soars 4.0%: Is Further Upside Left in the Stock?
Aon (AON - Free Report) shares rallied 4% in the last trading session to close at $328.69. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.7% loss over the past four weeks.
Aon shares climbed last Friday as investors shifted away from richly valued AI and technology stocks and into companies with more stable earnings amid ongoing economic uncertainty and expectations that interest rates will remain higher for longer. Insurance brokers, including Aon, benefited from this rotation as their recurring fee-based business models and resilient cash flows make them attractive during uncertain market conditions. The stock also likely received support from quarter-end portfolio rebalancing, as institutional investors adjusted their holdings before the close of the quarter, lifting the broader insurance brokerage sector.
This insurance brokerage is expected to post quarterly earnings of $3.77 per share in its upcoming report, which represents a year-over-year change of +8%. Revenues are expected to be $4.27 billion, up 2.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Aon, the consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AON going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Aon belongs to the Zacks Insurance - Brokerage industry. Another stock from the same industry, Ryan Specialty Group (RYAN - Free Report) , closed the last trading session 8.2% higher at $38.88. Over the past month, RYAN has returned 13.1%.
For Ryan Specialty, the consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $0.62. This represents a change of -6.1% from what the company reported a year ago. Ryan Specialty currently has a Zacks Rank of #4 (Sell).