BRO Outperforms Industry, Trades at Premium: How to Play the Stock
Shares of Brown & Brown, Inc. BRO have gained 15.7% in the past year, outperforming its industry, the Finance sector and the Zacks S&P 500 composite’s return. The insurer has a market capitalization of $35.61 billion. The average volume of shares traded in the last three months was 3.1 million. Image Source: Zacks Investment Research Earnings have grown 21.5% in the past five years, better than the industry average of 15.2%. Brown & Brown's bottom line outpaced estimates in three of the trailing four quarters and missed in one, the average surprise being 6.35%. BRO Shares are Expensive BRO shares are trading at a premium to the industry. Its price-to-forward 12-months earnings of 24.53X is higher than the industry average of 21.24X. Shares of other insurers like Arthur J. Gallagher & Co. AJG and Marsh & McLennan Companies, Inc. MMC are trading at a multiple higher than the industry average, while shares of Willis Towers Watson Public Limited Company WTW are trading at a...