Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Aon plc (AON) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Aon plc as such a stock due to the following factors:
- AON has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $96.9 million.
- AON has traded 1.1 million shares today.
- AON is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AON with the Ticky from Trade-Ideas. See the FREE profile for AON NOW at Trade-IdeasMore details on AON: Aon plc provides risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing services worldwide. The stock currently has a dividend yield of 0.8%. AON has a PE ratio of 24.7. Currently there are 3 analysts that rate Aon plc a buy, no analysts rate it a sell, and 10 rate it a hold.The average volume for Aon plc has been 2.0 million shares per day over the past 30 days. Aon plc has a market cap of $24.6 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.10 and a short float of 1.4% with 3.73 days to cover. Shares are up 46.5% year-to-date as of the close of trading on Wednesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Aon plc as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.1%. Since the same quarter one year prior, revenues slightly increased by 2.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- AON PLC has improved earnings per share by 32.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AON PLC increased its bottom line by earning $2.99 versus $2.87 in the prior year. This year, the market expects an improvement in earnings ($4.85 versus $2.99).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Insurance industry and the overall market, AON PLC's return on equity exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 32.25% and other important driving factors, this stock has surged by 45.77% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Insurance industry average, but is greater than that of the S&P 500. The net income increased by 25.5% when compared to the same quarter one year prior, rising from $204.00 million to $256.00 million.
- You can view the full Aon plc Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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