Brown & Brown Stock Near 52-Week High: What Should Investors Know?

Core Viewpoint - Brown & Brown, Inc. (BRO) demonstrates strong investor confidence with its stock trading near a 52-week high, indicating potential for further price appreciation and solid upward momentum as it trades above key moving averages [1] Financial Performance - Earnings have grown 21.5% over the past five years, surpassing the industry average of 13.7%, with the company consistently beating earnings estimates in the last four quarters, averaging a surprise of 8.18% [2] - The Zacks Consensus Estimate for 2025 earnings per share indicates an 8.8% year-over-year increase, with revenues projected at $5.21 billion, reflecting an 8.4% improvement [3] Analyst Sentiment - All seven analysts covering BRO have raised their estimates for 2025, with three also increasing estimates for 2026, leading to a 2.2% and 1.8% upward revision in the Zacks Consensus Estimates for 2024 and 2025, respectively [4] Stock Performance - BRO shares have gained 12.5% year-to-date, outperforming the industry growth of 10.6%, the Finance sector's return of 4.4%, and the Zacks S&P 500 composite's rise of 1% [5][6] Key Growth Drivers - The main revenue drivers include commissions and fees, benefiting from new business growth, strong retention rates, and continued rate increases across most coverage lines, achieving an intermediate annual revenue goal of$ 4 billion [7] - Strategic acquisitions have allowed BRO to capitalize on market opportunities, enhance its product and service portfolio, and expand its global reach, completing 32 acquisitions in 2024 [8][9] Capital Management - BRO maintains a strong liquidity position with an improving leverage ratio, ensuring effective cash deployment for acquisitions, capital expenditures, and shareholder dividends, having increased dividends for the last 30 years at a five-year CAGR of 8.7% [9][10]