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AJGArthur J. Gallagher & Co.Buy Wait5.6·$254.31+2.64%
Buy WaitModerate Confidence
Investment thesis

Arthur J. Gallagher delivered 35% year-over-year revenue growth and a cluster of six recent analyst upgrades signals renewed institutional interest, yet the stock remains below its 200-day moving average in a confirmed downtrend with a 5.2% monthly slope decline. Free cash flow converts at only 67 cents per dollar of net income — a quality gap that tempers the strong top-line story — while the 10.2% gap to the analyst price target with a 1.79-to-1 risk/reward offers meaningful room to run if the technical and earnings recovery sustains.

Thesis pillars

  • Strong Revenue Growth AccelerationStable
  • Earnings Recovery After Miss StreakDeteriorating
  • Confirmed Downtrend 200ma HeadwindDeteriorating
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Arthur J. Gallagher & Co. (AJG) Stock Analysis

Range Bound setup

Buy WaitGrowthModerate Confidence

Financial Services · Insurance Brokers

Earnings in 3 days (2026-07-30). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Wait for pullback to $224.43. Weak momentum; also below 200-day MA (death cross), recent C-suite change — blocks BUY_NOW at $254.31. Engine's entry $224.43 (Ma200 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risk: Analyst target reached - limited upside remaining.

Arthur J. Gallagher & Co. provides insurance brokerage, reinsurance brokerage (via Gallagher Re), and third-party claims administration globally, with brokerage at 87% of 2025 revenues. Fees and commissions are earned by placing coverage for commercial and nonprofit clients... Read more

$254.31-0.4% A.UpsideScore 5.6/10#10 of 14 Insurance Brokers
QualityF-score8 / 9FCF yield1.70%
IncomeYield1.13%(5y avg 1.01%)Payout42.88%sustainable
Entry $224.43(Ma200 Sticky)Stop $210.80Target $256.68(resistance)A.R:R -0.0:1
Analyst target$281.39+10.6%18 analysts
$256.68our TP
$254.31price
$281.39mean
$225
$388

Wait for pullback to $224.43. Weak momentum; also below 200-day MA (death cross), recent C-suite change — blocks BUY_NOW at $254.31. Engine's entry $224.43 (Ma200 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risk: Analyst target reached - limited upside remaining. Chart setup: RSI 50 mid-range, Bollinger mid-band. Earnings in 3 days. Wait until post-earnings. Score 5.6/10, moderate confidence.

Passes 4/9 gates (clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA) and earnings proximity 3d<=7d. Suitability: moderate.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Jul 30, 20263d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
Analyst target reached - limited upside remaining

Key Metrics

P/E (TTM)40.2
P/E (Fwd)16.7
Mkt Cap$63.7B
EV/EBITDA19.1
Profit Mgn11.4%
ROE7.0%
Rev Growth34.6%
Beta0.51
Dividend1.13%
Rating analysts29

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C2.22bearish
IV45%normal
Max Pain$150-41.0% vs spot

Material Events(8-K, last 90d)

  • 2026-03-12Item 5.02LOW
    Director Sherry Barrat informed AJG on March 6, 2026 of her decision to retire from the Board, effective May 12, 2026 at the 2026 Annual Meeting. Board size to reduce from ten to nine. No disagreement cited.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.

Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.

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No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.

Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.0
Volume
0.0
Obv
1.0
Rsi
5.5
Ma Position
8.0
Volume distribution (falling OBV)Above 200-MA but MA slope flat

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Support Resistance
2.0
Bollinger
3.4
52w Position
5.7
GatesMomentum 2.9<4.5A.R:R -0.0=NEGATIVEDeath cross (50MA < 200MA)EARNINGS PROXIMITY 3d<=7dExecutive change: officer departure/appointmentInsider activity: OKNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Moderate
RSI
50 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $223.26Resistance $261.92

Price Targets

$211
$224
$257
A.Upside-0.4%
A.R:R-0.0:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-0.4% upside)
! Earnings in 3 days - binary event risk
! momentum at 2.9 (below the engine's 4.5 threshold)

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-07-30 (3d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is AJG stock a buy right now?

Wait for pullback to $224.43. Weak momentum; also below 200-day MA (death cross), recent C-suite change — blocks BUY_NOW at $254.31. Engine's entry $224.43 (Ma200 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risk: Analyst target reached - limited upside remaining. Chart setup: RSI 50 mid-range, Bollinger mid-band. Earnings in 3 days. Wait until post-earnings. Target $256.68 (+0.9%), stop $210.80 (−20.6%), A.R:R -0.0:1. Score 5.6/10, moderate confidence.

What is the AJG stock price target?

Take-profit target: $256.68 (-0.4% upside). Target $256.68 (+0.9%), stop $210.80 (−20.6%), A.R:R -0.0:1. Stop-loss: $210.80.

What are the risks of investing in AJG?

Analyst target reached - limited upside remaining.

Is AJG overvalued or undervalued?

Arthur J. Gallagher & Co. trades at a P/E of 40.2 (forward 16.7). TrendMatrix value score: 5.3/10. Verdict: Buy (Wait for Entry).

What do analysts say about AJG?

29 analysts cover AJG with a consensus score of 4.0/5. Average price target: $281.

What does Arthur J. Gallagher & Co. do?Arthur J. Gallagher & Co. provides insurance brokerage, reinsurance brokerage (via Gallagher Re), and third-party...

Arthur J. Gallagher & Co. provides insurance brokerage, reinsurance brokerage (via Gallagher Re), and third-party claims administration globally, with brokerage at 87% of 2025 revenues. Fees and commissions are earned by placing coverage for commercial and nonprofit clients without assuming underwriting risk. The third-largest insurance broker by revenue globally, with ~72,000 employees and a $67 billion market cap at year-end 2025.

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