Aon Plc (AON): Insurance's Featured Champion Of The Day

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Aon plc ( AON) pushed the Insurance industry higher today making it today's featured insurance winner. The industry as a whole closed the day down 0.2%. By the end of trading, Aon plc rose 89 cents (1.5%) to $61.16 on average volume. Throughout the day, 2.5 million shares of Aon plc exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in a price between $60.19-$61.22 after having opened the day at $60.46 as compared to the previous trading day's close of $60.27. Other companies within the Insurance industry that increased today were: Triple-S Management Corporation ( GTS), up 2.4%, Universal Insurance Holdings ( UVE), up 2.4%, State Auto Financial Corporation ( STFC), up 2.3%, and Meadowbrook Insurance Group ( MIG), up 2%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Aon plc provides risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing services worldwide. Aon plc has a market cap of $18.6 billion and is part of the financial sector. The company has a P/E ratio of 20, above the S&P 500 P/E ratio of 17.7. Shares are up 6.9% year to date as of the close of trading on Friday. Currently there are five analysts that rate Aon plc a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Aon plc as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Aegon ( AEG), down 4.2%, ING Groep N.V ( ING), down 3.9%, MBIA ( MBI), down 3.6%, and Donegal Group ( DGICB), down 3.4%, were all laggards within the insurance industry with Lincoln National Corp (Radnor ( LNC) being today's insurance industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF ( KIE) while those bearish on the insurance industry could consider Proshares Short Financials ( SEF).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Cramer: Let's Handicap Hurricane Harvey's Best Stock Bets

The Stock That Crashed 25% Overnight Has a Lesson to Teach Us: Market Recon

Cramer: These Sectors Look Bullish (Part II)

Market Recon: Worryingly, the Indices Seem to Be Almost Resting at Lofty Levels

Cramer: There Are Powerful Themes in Several Bull Markets