AON - Aon plc

NYSE - Nasdaq Real Time Price. Currency in USD
220.43
-2.06 (-0.93%)
As of 1:32PM EST. Market open.
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Previous Close222.49
Open219.84
Bid220.83 x 800
Ask221.11 x 1000
Day's Range217.34 - 221.72
52 Week Range156.09 - 238.19
Volume683,954
Avg. Volume827,800
Market Cap51.048B
Beta (5Y Monthly)0.78
PE Ratio (TTM)34.63
EPS (TTM)6.37
Earnings DateApr 23, 2020 - Apr 27, 2020
Forward Dividend & Yield1.76 (0.79%)
Ex-Dividend DateJan 30, 2020
1y Target Est234.44
  • Billionaire Ken Griffin Pulls the Trigger on 3 “Strong Buy” Stocks
    TipRanks

    Billionaire Ken Griffin Pulls the Trigger on 3 “Strong Buy” Stocks

    While the economy is booming, there are some warnings signs starting to flash. Hedge fund manager Ken Griffin – who started trading at age 19, and now at 51 has amassed a fortune worth $15 billion – spoke about some of the near- and long-term risks in a recent interview.Griffin sees inflation as a danger in the longer term, mostly because the financial experts lack tools to determine when inflationary trends are starting. Griffin recounts how his firm’s best analysts were caught flat-footed in 2018 when the Fed started raising rates. Regarding the lack of accurate predictive foresight, Griffin says, “If there were inflation, the markets are utterly and completely unprepared for that.”But inflation, being invisible for now, is a long-term worry. Griffin sees the coronavirus outbreak has a larger threat, at least for the present. Griffin notes that a number of major companies – Apple is a particularly good example – have already announced lower Q4 and Q1 earnings, disrupted supply chains, and even store closings in response to the viral epidemic as it expands out of China. Griffin describes the epidemic as “probably the most concrete short-run risk we see in the financial markets globally.”The coronavirus is even impacting diplomacy. Griffin points out that specific terms of the US-China Phase 1 trade agreement have not yet begun implementation. The agreement puts an obligation on China to increase imports of US products on the order of $200 billion for the next two years – but that is on hold with large parts of China paralyzed by quarantines and global trade and travel patterns facing growing disruption.So, it may be interesting to see which stocks Griffin is willing to buy, given his view of the risks ahead. A look at the most recent 13F filing by Citadel, his hedge fund, reveals three new positions that TipRanks’ Stock Screener reveals as “strong buys.” Let's take a closer look.NexTier Oilfield Solutions (NEX)The first of Griffin’s new positions, we’ll look at is NexTier, a player in the oil field support services sector. Companies like NexTier don’t actually drill for oil, but they provide the support that the exploration and drilling operators need get the oil out of the ground. Without this support – the rig services, well completion, pumps and piping for fracking operations, and fluid management and disposal – the great oil fracking boom that has helped to power the US economy over the past 15 years could not have occurred.NEX is a new ticker in the market, formed during the third quarter last year when Keane Group and C&J Energy Services merged. The name change to NexTier reflects that the transaction was a merger of equals. NEX inherited the performance legacy of Keane, and the combined company reported Q3 earnings and revenues above the forecasts. It was the second quarter in a row that the company beat expectations. Looking ahead, the company will be reporting Q4 results on March 10, and is guiding for a net loss of 2 cents per share. The company is also guiding revenue in the $640 to $660 million range, slightly higher than previous guidance.So, we have a well-positioned services company in the oil industry – and Griffin’s fund bought up 6.169 million shares. That purchase represents a new stake for Citadel, and it’s worth over $30 million dollars at today’s prices.Conventional wisdom says the move is worth it. Sean Meakim, reviewing the stock for JPMorgan, is even more bullish. He writes, “We view NexTier as a leader in the industry in terms of driving technology improvements, and think it can continue to make strides in 2020to offset the macro headwinds. We model NEX delivering FCF of ~$50mm in 4Q19, sufficient to provide fuel for the company’s $100mm capital distribution plan…”Meakim puts a $9 price target on NEX shares, suggesting room for an impressive 84% upside potential. (To watch Meakim’s track record, click here)Overall, NexTier has a Strong Buy rating from the analyst consensus, based on 4 Buys and 1 Hold. The average price target of $7.90 implies an upside of 74% for the coming year. (See NexTier stock analysis at TipRanks)Aon Plc. (AON)Next on our list of new Citadel positions is Aon, a $50 billion player in the professional services and risk management industry. Aon is known as a major insurance broker, and works with large-scale clients to negotiate and place insurance policies, advise on health and other benefits, organize retirement compensation schemes, and even outsource human resources.Aon’s revenues and stock performance have been on an upward trajectory over the past year. In Q4 2019, the company reported $2.89 billion in total revenue, in line with the forecast and the year-ago number by 4%. EPS, at $2.53, was 1.6% higher than expected and most impressive 74% above the Q4 2018 figure.Share gains have been impressive, too. AON is up over 30% in the past 12 months. Complementing the share gains, AON also offers a modest dividend. At 0.79%, the yield is nothing to write home about, the share price is high enough that the annualized payment is $1.76 per share. It’s small addition for investors to count among the gains.Griffin clearly is impressed by the prospective gains here. His fund snapped up over 350,000 shares of Aon, which are now worth $77.9 million.Covering AON for Wells Fargo, analyst Elyse Greenspan writes, “We think AON is positioned to outperform as a stand-alone company or if they acquire WLTW. We believe a stand-alone AON is positioned to see industry-leading organic revenue growth and has several tailwinds to its FCF in 2020. If there is a deal, it would likely be because AON believes they can pull a healthy level of expenses out of WLTW without significant revenue disynergies. Recall AON and WLTW entered into deal negotiations last year that were called off in March 2019 and the one-year stand still on discussions ends on 3/6/20. Further, AON’s CEO has been an expense master during his tenure at AON and has been able to consistently pull expenses out of the company."Greenspan's $265 price target suggests an upside potential for AON of 20%. More importantly, she upgraded her stance on the stock, shifting from Neutral to Buy. (To watch Greenspan’s track record, click here)Aon’s Strong Buy consensus rating is supported by 5 analyst reviews, including 4 Buys and just 1 Hold. The stock is selling for $237.25, and the average price target of $237.25 indicates room for a modest 7% upside. (See Aon stock analysis at TipRanks)Digital Realty Trust (DLR)The final stock on our list is a Real Estate Investment Trust (REIT), specializing in data center and other tech-related properties. DLR owns properties around the world, in 15 countries, and boasts over 210 operating data centers. Like all REITs, Digital is required by US tax law to pay back the bulk of its profits to investors.Those profits can be substantial, as the company brings in over $3 billion annually on the top line. Earnings were robust in Q4 2019, at $1.62 per share. Estimated EPS for Q1 2020, to be reported in April, is $1.59.With robust earnings, DLR has no problem maintaining its dividend payments. Most REITs pay out strong dividends, as it is an easy way to remain in compliance with tax code regulations on profit sharing. DLR offers a 3.3% dividend yield, paid out quarterly at $1.08 per share. The payout ratio, which compares the quarterly dividend payment to the quarterly earnings, is 66.7%, indicating that the company can easily sustain the dividend given current income levels. DLR has raised its payment in each of the last three years.Strong earnings, a reliable dividend, and a pattern of long-term gains (this stock is up 34% over the last three years) are exactly the features that will attract attention from a hedge fund. So, it should be no surprise that Griffin’s fund picked up over 249,000 shares of DLR in Q4. Like the other stocks in this article, this is a new position for Griffin. At current prices, the fund’s stake in Digital Realty is worth $35.6 million.Weighing in on the stock for SunTrust Robinson, 5-star analyst Greg Miller is upbeat, saying, "We believe investors will continue to respond favorably to the execution of the business model. Sequentially higher 4Q signed leasing is not typical, underscoring DLR’s momentum… we believe the stock will continue to move higher."Miller’s Buy rating is supported by his $152 price target, which suggests room for 16% upside growth to the stock. (To watch Miller’s track record, click here)Wall Street’s analysts have given DLR 6 Buys and 2 Holds recently, making the consensus view a Strong Buy. The average price target is $137, which implies a small premium of 5% from the current share price of $130.38. (See Digital Realty stock analysis at TipRanks)

  • PR Newswire

    CarrierHQ provides certainty for truck-owner operators while AB5 gets worked out

    CarrierHQ, a leading software and solutions developer for the motor carrier industry, today announced that its innovative mobile-friendly portal is now available in California. CarrierHQs technology provides a comprehensive solution to reclassification and recruiting issues faced by large fleets and brokers by enabling independent contractors to form or grow their own fleets, thus helping large transportation companies avoid the major pitfalls that have recently befallen firms in the industry, while also increase operational capacity.

  • Top Ranked Growth Stocks to Buy for February 25th
    Zacks

    Top Ranked Growth Stocks to Buy for February 25th

    Top Ranked Growth Stocks to Buy for February 25th

  • Jeff Auxier Buys 5 Stocks in 4th Quarter
    GuruFocus.com

    Jeff Auxier Buys 5 Stocks in 4th Quarter

    Guru also gains position in ViacomCBS Continue reading...

  • Aon Further Aligns Leadership Team to Deliver More Value to Clients and Increase Momentum of Aon United Growth Strategy
    PR Newswire

    Aon Further Aligns Leadership Team to Deliver More Value to Clients and Increase Momentum of Aon United Growth Strategy

    Aon plc (NYSE:AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, is accelerating alignment and momentum around its Aon United growth strategy with a series of actions that support bringing the best of Aon to clients and driving sustainable growth of the firm.

  • Who Are Willis Towers Watson's Main Competitors? (WLTW)
    Investopedia

    Who Are Willis Towers Watson's Main Competitors? (WLTW)

    Following a 2015 merger, Willis Towers Watson PLC is now one of the largest insurance advisory and brokerage firms. These are its competitors in the industry.

  • Arthur J Gallagher Hits 52-Week High on Solid Q4 Results
    Zacks

    Arthur J Gallagher Hits 52-Week High on Solid Q4 Results

    Arthur J. Gallagher (AJG) reaches 52-week high, driven by strong fourth-quarter results and recent buyout.

  • Business Wire

    Insurance Labor Study Uncovers Difficult yet Optimistic Recruitment Environment

    The results of the 2020 first-quarter iteration of The Jacobson Group and Aon plc's Semi-Annual U.S. Insurance Labor Outlook Study are now available.

  • Arthur J. Gallagher Acquires Affiliated Benefit Consultants
    Zacks

    Arthur J. Gallagher Acquires Affiliated Benefit Consultants

    Arthur J. Gallagher (AJG) buys IL-based Affiliated Benefit Consultants, its sixth buyout in the ongoing quarter.

  • Reuters

    Australia says 2019/20 wheat harvest drops to lowest in 12 years

    Australia said on Tuesday its 2019/2020 wheat harvest was the lowest in 12 years, missing its forecast, as a severe drought across the east coast wilted crops. Australia's chief commodity forecaster said in December it expected wheat production during the 2019/2020 season to total 15.85 million tonnes. The east coast recorded little rain over the season.

  • Golf star Francesco Molinari: Why I use big data
    Yahoo Finance

    Golf star Francesco Molinari: Why I use big data

    Yahoo Finance speaks with golf major champion winner Francesco Molinari about his use of big data to improve his odds of winning the biggest tournaments in the game.

  • Wallace Weitz Sees Value in First Hawaiian
    GuruFocus.com

    Wallace Weitz Sees Value in First Hawaiian

    Guru adds bank to portfolio in 4th quarter Continue reading...

  • Aon's PathWise platform becomes 'all-in-one' financial risk management system for Kyobo Life
    PR Newswire

    Aon's PathWise platform becomes 'all-in-one' financial risk management system for Kyobo Life

    Aon plc (NYSE: AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, today announces that Kyobo Life has successfully implemented its PathWise high performance computing platform in preparation for the IFRS 17 and K-ICS financial reporting regimes.

  • Aon's PathWise platform becomes 'all-in-one' financial risk management system for Kyobo Life
    CNW Group

    Aon's PathWise platform becomes 'all-in-one' financial risk management system for Kyobo Life

    Aon's PathWise platform becomes 'all-in-one' financial risk management system for Kyobo Life

  • Aon calls for private and public sector collaboration to address the protection gap and build resilience against catastrophes
    CNW Group

    Aon calls for private and public sector collaboration to address the protection gap and build resilience against catastrophes

    Aon calls for private and public sector collaboration to address the protection gap and build resilience against catastrophes

  • Aon (AON) is a Great Momentum Stock: Should You Buy?
    Zacks

    Aon (AON) is a Great Momentum Stock: Should You Buy?

    Does Aon (AON) have what it takes to be a top stock pick for momentum investors? Let's find out.

  • Aon acquires Cytelligence, a leading international cyber security firm with deep expertise in cyber incident response and digital forensic investigations
    PR Newswire

    Aon acquires Cytelligence, a leading international cyber security firm with deep expertise in cyber incident response and digital forensic investigations

    Aon plc (NYSE: AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, announced today the acquisition of Cytelligence Inc, a Canadian-based cyber security firm that provides incident response advisory, digital forensic expertise, security consulting services and cyber security training for employees to help organizations respond to cyber security threats and strengthen their security position.

  • Aon's (AON) Earnings Surpass Estimates in Q4, Improve Y/Y
    Zacks

    Aon's (AON) Earnings Surpass Estimates in Q4, Improve Y/Y

    Aon's (AON) Q4 results benefit from better revenues and solid segmental performances.

  • Aon (AON) Q4 Earnings and Revenues Top Estimates
    Zacks

    Aon (AON) Q4 Earnings and Revenues Top Estimates

    Aon (AON) delivered earnings and revenue surprises of 1.61% and 0.62%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?