Aon Plc (AON): Today's Featured Insurance Laggard

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 lower today making it today's featured Insurance laggard. The industry as a whole closed the day down 1.1%. By the end of trading, Aon plc fell $2.74 (-4.1%) to $63.67 on heavy volume. Throughout the day, 3,946,220 shares of Aon plc exchanged hands as compared to its average daily volume of 2,044,900 shares. The stock ranged in price between $63.64-$66.33 after having opened the day at $65.88 as compared to the previous trading day's close of $66.41. Other companies within the Insurance industry that declined today were: Universal Insurance Holdings ( UVE), down 6.6%, Stewart Information Services ( STC), down 5.3%, China Life Insurance ( LFC), down 4.5% and Prudential ( PUK), down 4.2%.
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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 $20.5 billion and is part of the financial sector. The company has a P/E ratio of 21.4, above the S&P 500 P/E ratio of 17.7. Shares are up 19.4% year to date as of the close of trading on Thursday. 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, good cash flow from operations, increase in net income, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Atlas Financial Holdings ( AFH), down 6.9%, Life Partners Holdings ( LPHI), down 5.5% and Erie Indemnity Company ( ERIE), down 3.3%.

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).

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