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Headquartered in Rolling Meadows, Illinois, Arthur J. Gallagher & Co. (AJG) is a leading global insurance brokerage and risk management services firm. With a market cap of $65.3 billion, AJG plays a vital role in the insurance industry, providing a comprehensive range of services that empower clients to effectively manage risk and safeguard their assets.
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. It maintains a robust market position, leveraging a trusted brand, personalized service, and advanced data capabilities to create a competitive advantage.
AJG’s shares have climbed to a new 52-week high of $300.66 in the last trading session. AJG has soared 17.1% over the last three months, outperforming the S&P 500 Index’s ($SPX) 2.5% gains during the same time frame.
In the long term, AJG is up 32.9% on a YTD basis, and the shares have returned an impressive 31% over the past 52 weeks. In comparison, the SPX has soared 15.2% in 2024 and rallied 23.3% over the past year.
To confirm the bullish price trend, AJG has been trading above its 50-day and 200-day moving average since early May.
AJG's successful completion of 12 mergers and an expanding M&A pipeline of over $500 million have further bolstered investor confidence. The company's ability to capitalize on rational insurance pricing strategies, leading to rate increases across various sectors, and continued strong business activity has further driven its impressive price performance.
Shares of Arthur J. Gallagher surged 3.5% in the following trading session after its Q2 earnings release on Jul. 25. The company reported an impressive 13.7% annual revenue growth, amounting to $2.8 billion, with a 14.4% revenue surge from the brokerage segment to $2.3 billion.
Arthur J. Gallagher's competitor, Marsh & McLennan Companies, Inc. (MMC), has underperformed AJG, with MMC’s 22.4% gains on a YTD basis and a 19% return over the past 52 weeks.
Given its outperformance relative to SPX, analysts are moderately optimistic about AJG's prospects. The stock has a consensus rating of "Moderately Buy" from 19 analysts in coverage, and the stock currently trades over its mean price target of $284.88.
On the date of publication, Kritika Sarmah 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.
