How Is Arthur J. Gallagher's Stock Performance Compared to Other Insurance Stocks?

Financial (names A - I) - Arthur J_ Gallagher & Co_ logo and data- by Piotr Swat via Shutterstock

Arthur J. Gallagher & Co. (AJG), based in Rolling Meadows, Illinois, is a prominent global insurance brokerage and risk management services firm. With a market cap of $57.22 billion, AJG stands as a key player in the insurance industry, offering a wide array of services designed to help clients manage risk and protect their assets. Competing with other leading insurance and risk management firms, Arthur J. Gallagher's main rivals include Marsh & McLennan Companies, Inc. (MMC), renowned for its comprehensive suite of advisory and brokerage services.

Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Arthur J. Gallagher fits this criterion perfectly, signifying its substantial size, stability, and influence in the insurance and risk management industry. The company's global presence and expertise make it a trusted partner for businesses and individuals seeking effective risk management and insurance solutions.

AJG’s shares have climbed to a new high of $264.26 in the last trading session, with AJG up 3.2% over the last 3 months. Over this same period, the SPDR S&P Insurance ETF (KIE) has declined marginally, so AJG stands out as an outperformer.

In the long term, AJG is up 16.5% YTD, and the shares have returned an impressive 22.5% over the past 52 weeks. In comparison, the KIE gained 10.7% in 2024 and rallied 24% over the past year.

To confirm the bullish price trend, AJG has been trading above its 200-day moving average since late April and 50-day moving average since early May.

Arthur J. Gallagher reported Q1 earnings on Apr. 25, beating Wall Street’s revenue and EPS expectations. The stock gained marginally on the earnings release day. The company reported a profit of $608.4 million, translating to $2.74 per share. Adjusted for non-recurring costs, earnings were $3.49 per share, surpassing Wall Street expectations of $3.40 per share. The company’s adjusted revenue of $3.22 billion beat analysts’ forecast of $3.15 billion.

Highlighting the contrast in performance, rival MMC has underperformed AJR, gaining 12.3% on a YTD basis

Given its outperformance relative to KIE, analysts are optimistic about AJG's prospects. The stock has a consensus rating of "Moderately Buy" from 17 analysts in coverage. The mean price target of $263.43 reflects a marginal premium over current levels.

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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.