Arthur J. Gallagher & Co. (AJG) Rated 62% by Low PE Investor Model

According to a recent report, Arthur J. Gallagher & Co. (AJG) received a 62% rating from the Low PE Investor model, highlighting strong fundamentals despite a failing P/E ratio. The stock shows promise with positive EPS growth and free cash flow, signaling potential investor interest.

Date: 12-09-2024

AI Rating: 6

Arthur J. Gallagher & Co. (AJG) currently stands out in the Insurance (Miscellaneous) industry, receiving a score of 62% from the Low PE Investor model, which emphasizes persistent earnings growth. The firm shows strong fundamentals with several key measures passing the strategy's tests:

EPS Growth: The company passed, indicating improving profitability.
Future EPS Growth: Also a pass, suggesting expected continued earnings growth.
Sales Growth: The passed status here points to increasing revenues.
Free Cash Flow: With a pass, AJG displays strong liquidity and financial stability.
EPS Persistence: This pass suggests consistent earnings performance.

However, it failed the P/E Ratio and Total Return/PE tests, raising concerns about its valuation relative to earnings. Overall, despite the negative performance in P/E ratios, the robust growth in EPS, sales, and free cash flow might attract investor interest, potentially influencing stock prices positively.

Stocks: AJG