Earnings Beat, Big Money Lift Brown & Brown Shares

BRO has a market capitalization of nearly $34 billion, selling insurance products mostly in the U.S., but also in London, Bermuda, and the Cayman Islands. The company’s focus is mostly on property, casualty, and employee benefits lines of business, where BRO connects customers with insurers and generates fees in the process. BRO’s new business, customer retention, rate increases, and acquisitions keep it in a strong financial position.

Earnings-wise, BRO’s fourth-quarter fiscal 2024 report showed $1.2 billion in quarterly revenue, which beat estimates and represents a 15.4% year-over-year increase. Per-share earnings came in at $0.73 on a diluted basis, beating estimates of $0.65. For the full year, revenue came in at $4.8 billion, which was up 12.9% over 2023 and was largely boosted by organic business growth.

It’s no wonder BRO shares are up 19% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Buys Brown & Brown

Institutional volumes reveal plenty. In the last year, BRO has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in BRO shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of financials names are under accumulation right now. But there’s a powerful fundamental story happening with Brown & Brown.

Brown & Brown Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, BRO has had strong sales and earnings growth:

• 3-year sales growth rate (+16.5%)
• 3-year EPS growth rate (+18.9%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +8.7%.

Now it makes sense why the stock has been powering to new heights. BRO has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Brown & Brown has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when BRO was a top pick…making the stock soar:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Brown & Brown Price Prediction

The BRO rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in BRO at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.