Rolling Meadows, Illinois-based Arthur J. Gallagher & Co. (AJG) is a global insurance company that provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals. Valued at a market cap of $86.6 billion, the company operates in Brokerage and Risk Management segments. 

Shares of AJG have notably outpaced the broader market over the past 52 weeks. AJG has soared 34.7% over this time frame, while the broader S&P 500 Index ($SPX) has gained 10.2%. Moreover, shares of AJG are up 19.1% on a YTD basis, compared to SPX’s 1.3% dip.

Zooming in further, Arthur J. Gallagher has also outperformed the Financial Select Sector SPDR ETF Fund’s (XLF) 21% return over the past 52 weeks and 3.6% rise on a YTD basis.

Arthur J. Gallagher’s stock surged 4.2% following the release of its Q1 2025 earnings on May 1. Quarterly revenue rose 14.5% year-over-year to $3.7 billion. Its adjusted EBITDAC increased 24.4% from the prior-year quarter to $1.4 billion, with an adjusted EBITDAC margin of 41.1%. Adjusted EPS came in at $3.67, marking a 6.4% increase from the year-ago quarter and surpassing the consensus estimate by 2.8%.  

For the fiscal year ending in December 2025, analysts expect AJG’s adjusted EPS to increase 10.7% year-over-year to $11.17. The company's earnings surprise history is strong. It beat or met the consensus estimates in the past four quarters. 

Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, eight “Holds,” and one “Strong Sell.”

On May 2, Keefe Bruyette & Woods analyst Meyer Shields raised AJG's price target to $315 while maintaining a “Market Perform” rating on the stock. 

As of writing, Arthur J. Gallagher is trading slightly below the mean price target of $342.73. The Street-high price target of $388 implies a potential upside of 14.8% from the current price levels.