Arthur J Gallagher & CoTouted as top services stock with strong revenue and earnings growth, and attractive forward P/E.
StockStory identifies Arthur J. Gallagher as a business services stock poised to beat the market, while naming Baldwin Insurance Group and CoStar Group as risky. Arthur J. Gallagher, with a market cap of $56.76 billion, posted annual revenue growth of 19.1% over the last two years and earnings per share compounding at 18.5% annually over five years, and trades at 15.3 times forward price-to-earnings. Baldwin Insurance Group, valued at $1.80 billion, saw its free cash flow margin shrink by 5.1 percentage points over five years and carries a 6 times net-debt-to-EBITDA ratio, with shares at $24.19 implying a 10.7 times forward P/E. CoStar Group, at a $13.33 billion market cap, experienced a 1.6% annual decline in earnings per share over five years and a 17.4 percentage point drop in free cash flow margin, trading at $30.65 per share or 20 times forward P/E.
Arthur J Gallagher & CoTouted as top services stock with strong revenue and earnings growth, and attractive forward P/E.
The Baldwin Insurance Group, Inc.Flagged as risky due to shrinking free cash flow margin and high net-debt-to-EBITDA ratio.
CoStar Group IncFlagged as risky due to declining earnings per share and falling free cash flow margin.