Aon Plc (AON): Today's Featured Financial Winner

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 Financial sector higher today making it today's featured financial winner. The sector as a whole closed the day up 0.3%. By the end of trading, Aon plc rose $1.09 (1.7%) to $64.80 on average volume. Throughout the day, 2,511,774 shares of Aon plc exchanged hands as compared to its average daily volume of 2,306,400 shares. The stock ranged in a price between $63.67-$64.95 after having opened the day at $63.77 as compared to the previous trading day's close of $63.71. Other companies within the Financial sector that increased today were: National Bank of Greece ( NBG), up 22.8%, American Spectrum Realty ( AQQ), up 16.5%, Capital ( CT), up 11.0% and MBIA ( MBI), up 7.6%.
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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 $19.6 billion and is part of the insurance industry. The company has a P/E ratio of 20.5, above the S&P 500 P/E ratio of 17.7. Shares are up 14.6% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Aon plc a buy, no analysts rate it a sell, and 9 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 revenue growth, notable return on equity, reasonable valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Patriot National Bancorp ( PNBK), down 12.2%, Atlantic Coast Financial ( ACFC), down 11.6%, Investors Capital Holdings ( ICH), down 9.8% and Calamos Asset Management ( CLMS), down 7.3% , were all laggards within the financial sector with HCP ( HCP) being today's financial sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial sector could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial sector could consider Proshares Short Financials ( SEF).

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