The Chart of the Day belongs to the insurance brokerage company Arthur J Gallagher (AJG). I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 10/31 the stock gained 2.82%.
Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to businesses and organizations worldwide. It operates in Brokerage and Risk Management segments. The Brokerage segment offers retail and wholesale insurance and reinsurance brokerage services; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; and acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverages to underwriting enterprises. This segment also performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance; and offers services in the areas of insurance and reinsurance placement, risk of loss management, and management of employer sponsored benefit programs. The Risk Management segment provides contract claim settlement and administration services; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent brokers and consultants. It serves commercial, industrial, public, religious, and not-for-profit entities, as well as underwriting enterprises. The company was founded in 1927 and is headquartered in Rolling Meadows, Illinois.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 31.50+ Weighted Alpha
- 30.22% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 12 new highs and up 7.50% in the last month
- Relative Strength Index 67.32%
- Technical support level at $234.86
- Recently traded at $241.93 with 50 day moving average of $231.25
Fundamental Factors:
- Market Cap $52.24 billion
- P/E 27.81
- Dividend yield .91%
- Revenue expected to grow 15.20% this year and another 13.10% next year
- Earning estimated to increase 13.20% this year, an additional 15.10% next year and continue to compound at an annual rate of 12.70% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 10 strong buy, 3 buy, 3 hold and 2 sell opinions on the stock
- Analysts' price targets are between $187 and $277 with a consensus of $253
- The individual investors following the stock on Motley Fool voted 91 to 19 for the stock to beat the market with the more experienced investors voting 18 to 3 for the same result
- Value Line rates its an average of 3 with a price target of $272 for a 15% gain
- CFRAs MarketScope rates it a 4 star buy with a price target of $270
- 7,080 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten 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.
