AJG Stock Analysis: Buy, Sell, or Hold?

AJG - Arthur J. Gallagher & Co.

INSURANCE AGENTS, BROKERS & SERVICE
$249.37
3.53 (1.44%) ▲
BUY
HIGH Confidence
Last Updated: January 30, 2026
Earnings: Jan 29, 2026 0d

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
✅ BUY SIGNAL: AJG shows strong fundamentals and good volume confirmation. Solid entry point despite oversold pricing.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$488.46
Based on 14.1% avg growth
INTRINSIC VALUE TODAY
$303.29
17.8% Margin of Safety

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 19.2x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: AJG is currently trading at $249.37, which is considered oversold relative to its 30-day fair value range of $250.34 to $262.98. The stock's valuation (Forward PE: 18.5) is in line with its historical norms (19.2). Remarkably, the market is currently pricing in an annual earnings decline of 1.3% over the next few years. This aligns with recent fundamental challenges.

Technical Outlook: Technically, AJG is in a strong downtrend. Immediate support is located at $236.53, while resistance sits at $258.59.

Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $293.56 (+19.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position OVERSOLD
Fair Price Range $250.34 - $262.98
Company Quality Score 53/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 77.1%

All Signals

  • BULLISH: Price oversold vs 30-day range
  • NEUTRAL: Mixed technical signals (40/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading below Wall St target ($293.56)

Fair Price Analysis

30-Day Fair Range $250.34 - $262.98
Current vs Fair Value OVERSOLD

Support & Resistance Levels

Support Level $236.53
Resistance Level $258.59
Current Trend Strong Downtrend

Fundamental Context

Forward P/E (Next Year Est.) 18.50
Wall Street Target $293.56 (+19.4%)
Revenue Growth (YoY) 20.0%
Earnings Growth (YoY) -25.2%
Profit Margin 13.3%
Valuation Discount vs History -1.3% cheaper
PE vs Historical 18.5 vs 19.2 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -1.3% (market-implied from PE analysis)
1-Year Target $242.64 (-1%)
2-Year Target $239.49 (-3%)
3-Year Target $236.38 (-4%)
3-Yr Target (if PE normalizes) (PE: 19→19) $245.25 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.3, Growth: 24.2%) $567.56 (+131%)
Base: (SPY PE: 18.5, Growth: 24.2%) $470.97 (+92%)
Bear: (PE: 15.7, Growth: 24.2%) $400.33 (+63%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (39x PE), but valuation improves significantly next year (19x PE) as earnings recover.
Trailing PE: 38.71 | Current EPS (TTM): $6.26
Bull Case $533.13 (+117%)
Analyst growth 100.0%, PE expands to 42.6
Base Case $484.66 (+97%)
Market implied 100.0%, PE stable at 38.7
Bear Case $164.78 (-33%)
Severe decline -20.0%, PE contracts to 32.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 18.5 to 19.2
Stabilization Target: $255.07 (+3.8%)
PE Expansion Potential: +3.8%
Last updated: January 30, 2026 4:13 PM ET
Data refreshes hourly during market hours. Next update: 5:13 PM
🔥 Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
1
Buys
8
Sells
Net
INSIDERS SELLING
Recent Transactions
Val T. Hoyle SELL 2025-09-23
Douglas K Howell SELL 8000 shares 2025-09-22
Douglas K Howell SELL 6000 shares 2025-09-19

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