AON Stock Analysis — Aon plc
Sector: Financials
AI Verdict
Aon is cheap relative to its own history and deeply oversold on RSI, but you’re still paying a premium to sector norms for mid-single-digit growth that relies on its consulting moat staying intact.
Competitive Moat
Aon is a global insurance brokerage and risk consulting firm with sticky client relationships due to its scale, data analytics capabilities, and integration into clients’ risk management processes. Its consulting and reinsurance arms create switching costs and recurring revenue streams that are hard for smaller competitors to replicate.
Summary
Aon's RSI of 20.5 signals extreme oversold territory, making it a technical outlier among large-cap financials.
Where It Stands
Shares are down -3.05% over the past year, trade at 18.0x next year's earnings (vs. financials median 14x), and sit at an RSI of 20.5, suggesting deep oversold conditions despite a premium multiple.
Key Metrics
- RSI: 20.5 — Oversold
- Trailing P/E: 19.6x
- Forward P/E: 18.0x
- PEG Ratio: 2.15
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Market Cap: $75.5B
- Dividend Yield: 0.01%
- 1-Year Return: -3.05%
- 52-Week High: $382.34
- 52-Week Low: $304.59
Analyst Consensus
18 Buy · 9 Hold · 2 Sell (29 analysts)
Bull Case
Aon trades at 18.0x forward earnings with analysts expecting 9.1% EPS growth, which is a reasonable price if its client retention and consulting moat drive steady profit expansion.
Bear Case
If the P/E multiple falls from 18.0x to the sector median of 14x, the stock would lose roughly 22% even if earnings meet expectations.
Catalyst to Watch
Watch for upcoming earnings or client win announcements—upside surprise on margins or retention could justify the current premium.