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In a remarkable display of market confidence, Aon plc (NYSE: AON) stock has soared to an all-time high, reaching a price level of $389.3. This peak represents a significant milestone for the professional services firm, which specializes in risk, retirement, and health solutions. Over the past year, Aon's stock has witnessed a substantial uptick, with a 1-year change showing an impressive 17.87% increase. Investors and analysts alike are closely monitoring Aon's performance, as its shares continue to reflect the company's robust financial health and its strategic position in the global marketplace.
In other recent news, Aon Corp (NYSE:AON)'s third-quarter earnings for 2024 exceeded expectations, leading BMO Capital Markets to raise its price target on Aon shares to $380. The company's EPS estimates for 2025 and 2026 have been adjusted upward by 1% and 7% respectively, reflecting a positive earnings trajectory. Concurrently, Aon announced plans to acquire UK-based insurance broker Griffiths & Armour, expanding its presence in the UK and Ireland. The acquisition is expected to close in the first quarter of 2025.
Goldman Sachs maintained a Neutral stance on Aon, raising its price target to $390 based on the company's organic growth prospects. RBC Capital, on the other hand, adjusted its stock price target for Aon, reducing it from $390 to $365, while maintaining a Sector Perform rating.
Aon's recent acquisition of NFP, a leading insurance broker and consultant, has begun to generate cost savings and is expected to contribute $175 million in revenue synergies and $60 million in operational efficiencies by 2026. These are among the recent developments that have shaped Aon's business trajectory.
InvestingPro Insights
Aon's recent stock performance aligns with several key insights from InvestingPro. The company's stock is currently trading near its 52-week high, with a price that is 99.64% of its highest point over the past year. This surge is part of a larger trend, as InvestingPro data shows a substantial 38.1% price total return over the last six months.
The company's financial strength is further underscored by its consistent dividend history. According to InvestingPro Tips, Aon has raised its dividend for 13 consecutive years and has maintained dividend payments for an impressive 45 consecutive years. This commitment to shareholder returns is complemented by a solid revenue growth of 13.67% over the last twelve months, with quarterly revenue growth reaching 26.01% in Q3 2024.
However, investors should note that Aon is trading at a high earnings multiple, with a P/E ratio of 32.84. This valuation metric suggests that the market has high expectations for future growth. For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Aon, providing deeper insights into the company's financial health and market position.
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