Highly rated insurer AON rose to a record high in March as investors sought "safer" securities amid the Trump administration tariff rollouts and lingering concerns about inflation and interest rates.
Aon stock consolidated, dipping to a 323.73 low on April 25 as the stock market rebounded and investors sought more risk-on stocks like the Magnificent Seven. This month Aon reversed higher, aiming again for that record high.
Aon Stock Gets Key Rating Upgrade
Also on Tuesday, Aon got a welcome upgrade to its Relative Strength (RS) Rating, rising from 68 to 72. The upgrade moves it closer to a major benchmark. Research shows that the best stocks tend to have an RS Rating north of 80 as they begin their biggest price moves. See if Aon can continue to rebound and clear that threshold.
When To Sell Stocks To Lock In Profits And Minimize Losses
Among its other ratings Ireland-based Aon has a strong 80 Earnings Per Share Rating, putting it in the top 20% of all companies for recent and long-term profit growth. It has an 87 Composite Rating, close to what The IBD Methodology investors look for. Research shows that the best growth stocks have a 90 or higher Composite. Look for Aon to close that three-point gap.
Additionally, it has a B- Accumulation/Distribution Rating. That means mutual funds, ETFs and the like are buying more AON shares than they're selling.
Aon stock is building a consolidation with a 412.97 buy point. See if it can break out in heavy volume. Tuesday afternoon Aon traded above 360, down fractionally for the day.
Earnings Flat Last Quarter, Projected To Jump This Quarter
Aon reported 0% earnings growth in its most recent report, or $5.67 per share. Sales grew 16% to $4.73 billion. It was the company's weakest earnings showing in a year. However, Wall Street thinks Aon has turned a corner. Analyst consensus is for EPS to shoot up 17% this quarter, which would be its best growth rate in three quarters. Revenue is seen climbing 11% to $4.16 billion.
Aon stock earns the No. 5 rank among its peers in the 16-stock Insurance-Brokers industry group. Kingstone is the No. 1-ranked stock in the group.
IBD's unique Relative Strength Rating tracks share price performance with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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