13 Best Income Stocks With Highest Upside Potential

7. Arthur J. Gallagher & Co. (NYSE:AJG)

Upside Potential as of February 28: 28.3%

On February 27, Mizuho upgraded Arthur J. Gallagher & Co. (NYSE:AJG) to Outperform from Neutral. It set a price target of $260, down from $277. The firm made the change after adjusting ratings across the insurance property and casualty sector following the recent selloff. The analyst said insurance brokers that focus on middle-market and large clients face a “low disruption threat” from AI. He also noted that disintermediation risk is “geared to mass market personal lines and the smaller end of SME.” This suggests companies like Arthur J. Gallagher, which serve larger commercial clients, are less exposed to these risks.

On February 26, Arthur J. Gallagher announced the acquisition of Krose GmbH & Co KG, a commercial insurance and reinsurance brokerage based in Bremen, Germany. Founded in 1920, Krose provides insurance solutions for corporate clients across Germany and focuses on designing and placing complex insurance programs. Krose’s team works across several areas, including property, casualty, cyber, marine, D&O, and alternative risk solutions. The team will join Gallagher’s brokerage operations in Europe, expanding its capabilities and presence in the region.

Arthur J. Gallagher & Co. (NYSE:AJG) is a global insurance brokerage, risk management, and consulting firm headquartered in Rolling Meadows, Illinois. The company operates in about 130 countries through its own offices and a network of partner brokers and consultants.