With a market cap of $84 billion, Arthur J. Gallagher & Co. (AJG) is a global provider of insurance brokerage, risk management, and consulting services. Operating through its Brokerage and Risk Management segments, the company delivers customized solutions in property/casualty insurance, employee benefits, and third-party claims administration. 

Companies worth more than $10 billion are generally labeled as “large-cap” stocks and Arthur J. Gallagher fits this criterion perfectly. With a worldwide presence supported by a network of correspondent brokers and consultants, Gallagher serves a diverse range of clients including commercial, industrial, public, and nonprofit entities.

Shares of Rolling Meadows, Illinois-based company have declined 6.2% from its 52-week high of $351.23. AJG stock has decreased 3.1% over the past three months, lagging behind the Financial Select Sector SPDR Fund’s (XLF) 3.9% return over the same time frame. 

In the longer term, AJG stock is up over 16% on a YTD basis, outperforming XLF’s 6.2% gain. In addition, shares of Arthur J. Gallagher has soared 30.9% over the past 52 weeks, compared to XLF’s 24.3% return over the same time frame.

AJG stock has been trading mostly above its 50-day and 200-day moving averages since last year.

Despite reporting weaker-than-expected Q1 2025 adjusted revenue of $3.7 billion on May 1, Arthur J. Gallagher shares rose 4.2% the next day. The company reported adjusted EPS of $3.67, beating the consensus estimate and growing 6.3% year over year, while adjusted EBITDAC surged 24.3% to $1.4 billion. Investors were also encouraged by robust segment margins, particularly the 360 bps expansion in the Brokerage segment to 43.4% and the successful completion of 10 acquisitions totaling $62.7 million in estimated annualized revenues.

Arthur J. Gallagher has outpaced its rival, Marsh & McLennan Companies, Inc. (MMC), which saw a 8.2% increase on a YTD basis and 10.4% gain over the past 52 weeks. 

Although the stock’s outperformance over the past year, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 18 analysts' coverage, and as of writing, AJG is trading below the mean price target of $344.27.