BRO Stock Analysis — Brown & Brown
Sector: Insurance Brokerage
AI Verdict
BRO trades at 15.1x next year's earnings with 32.7% EPS growth expected, making it cheap for the growth you're getting if its sticky client base keeps delivering.
Competitive Moat
Brown & Brown operates as an insurance broker, leveraging long-standing client relationships and a decentralized structure that allows local offices to tailor solutions and retain business. Its scale and sticky customer base make it difficult for smaller competitors to match its service breadth or pricing power.
Summary
BRO is notable for its expected 32.7% EPS growth next year while trading at just 15.1x forward earnings.
Where It Stands
Despite a -25.91% 1-year return and an RSI of 65.6 signaling pullback risk, BRO trades at 15.1x forward earnings—well below the insurance sector median of 14x, but with much higher expected EPS growth.
Key Metrics
- RSI: 65.6 — Near Overbought
- Trailing P/E: 20.1x
- Forward P/E: 15.1x
- PEG Ratio: 0.60
- Earnings Growth: +0.3%
- Revenue Growth: +0.3%
- Market Cap: $23.8B
- Dividend Yield: 0.01%
- 1-Year Return: -25.91%
- 52-Week High: $98.30
- 52-Week Low: $53.81
Analyst Consensus
7 Buy · 18 Hold · 1 Sell (26 analysts)
Bull Case
With analysts projecting 32.7% EPS growth and a forward P/E of 15.1x, you're paying a low price for unusually high growth in this sector.
Bear Case
An RSI of 65.6 suggests the stock is at elevated levels, so even a modest pullback to a sector-median P/E of 14x would mean a further 7% downside from here.
Catalyst to Watch
Watch for next quarter's earnings—if EPS growth matches or beats the 32.7% consensus, the valuation gap could close quickly.