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Arthur J. Gallagher (AJG) Positioned For Organic Topline Growth

Arthur J. Gallagher & Company (NYSE:AJG) is one of the 12 oversold financial stocks to invest in according to hedge funds.

On January 30, Paul Newsome from Piper Sandler maintained his Neutral rating on Arthur J. Gallagher & Company (NYSE:AJG). The analyst, however, reduced the price target from $272 to $249, which now leads to an upside potential of around 20%.

Copyright: sifotography / 123RF Stock Photo

Newsome acknowledged Arthur J. Gallagher & Company’s (NYSE:AJG) acquisition revenues and other items that led to “better-than-expected” profitability in the recent announcement. He noted management’s continued optimism about future organic topline growth. However, the analyst expressed his concerns on weakening business environment and ongoing competitive pressures.

On January 30, the price target on Arthur J. Gallagher & Company (NYSE:AJG) was lowered from $311 to $298 by Wells Fargo analyst Elyse Greenspan, who maintained an Overweight rating on the stock.

Greenspan’s revised projections offer an upside potential of 43%. She highlighted the company’s fourth quarter EPS of $2.38, which beat Wells Fargo’s $2.33 and the street’s $2.35 estimates due to higher Brokerage profitability margins. Organic growth across the Brokerage segment was reported at 5%.

Arthur J. Gallagher & Company (NYSE:AJG) delivers insurance brokerage, reinsurance, risk management, consulting, and third-party claims settlement services, covering both individuals and corporate clients. Some of its offerings include insurance placement, underwriting management, wholesale insurance, and reinsurance negotiating services. Through its operations, it caters to commercial, industrial, public sector, and non-profit clients.

While we acknowledge the risk and potential of AJG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AJG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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