Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

Brown & Brown Lacks Enough Visibility For An Investment Right Now

Brown & Brown Inc. (NYSE:BRO) is a mid-sized ($4.7B) diversified insurance company that has a lot of things going for it; decent revenue growth, sustained profitability, diversified operations, a few catalysts and a respectable dividend.

Thesis:

Unfortunately, the stock also has one major factor working against it; it's not cheap either compared with peers or based on the stock's own history. As a result investors looking to get into the company either need to have a long-term interest in the stock (and a willingness to see the price appreciate at the same rate as profits over the long run), or they need to be very optimistic about the catalysts the firm has coming up. For those investors who...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details