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Dublin, Ireland-based Aon plc (AON) is a professional services firm offering a range of risk and human capital solutions. With a market cap of $78.4 billion, the company's services include helping manage risk for clients, negotiating and placing insurance risk with other carriers, and advising clients related to health and benefits, retirement, compensation, strategic human capital, and human resource outsourcing.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and AON fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the insurance brokers industry. Aon's global reach and its comprehensive suite of services in risk, reinsurance, health, and retirement solutions sets it apart in the marketplace. Aon's strong reputation and analytics expertise drive client attraction and retention, delivering customized solutions and valuable insights for a competitive edge.
Despite its notable strength, AON slipped 8.3% from its 52-week high of $395.33, achieved on Nov. 27. Over the past three months, AON stock gained 5.2%, underperforming the S&P 500 Index’s ($SPX) 9.5% gains during the same time frame.
In the longer term, shares of AON rose 24.6% on a YTD basis and climbed 10.1% over the past 52 weeks, underperforming SPX’s YTD gains of 27.6% and 31.6% returns over the last year.
To confirm the bullish trend, AON has been trading above its 200-day moving average since late July. However, despite the positive price momentum, the stock has been trading below its 50-day moving average recently.
On Oct. 25, AON shares closed up more than 5% after reporting its Q3 results. The company’s revenue was $3.72 billion, beating Wall Street forecasts of $3.7 billion. Its adjusted EPS was $2.72, surpassing analyst estimates by 11%.
AON’s rival, Marsh & McLennan Companies, Inc. (MMC) shares have lagged behind the stock, with a 13.1% uptick on a YTD basis and 7.9% gains over the past 52 weeks.
Wall Street analysts are cautious on AON’s prospects. The stock has a consensus “Hold” rating from the 21 analysts covering it, and the mean price target of $384.53 suggests a potential upside of 6% from current price levels.
