Let’s take a brief check on where covering Street analysts see Arthur J. Gallagher & Co. (NYSE:AJG) moving in the near-term. Analysts taken into consideration by Thomson Reuters have a current consensus target on company shares of $62.27.
Individuals invest in order to get a return on the investment. Nobody enters the equity markets with the hope of losing money. Returns on investments may come in different forms. With any stock investment, there may be some level of risk involved. Understanding the risk is important and should be considered very carefully. Of course, the stock may go up and become a winner, or shares could sour and turn into losers. Returns in the stock market may often mimic the amount of risk. Generally speaking, the greater the risk, the greater the reward. With the greater chance of reward comes the greater chance of losses. Keeping a balanced and diversified portfolio can help manage the risk associated with investing in the stock market.
In order to arrive at a price target, analysts and investors alike use various metrics to determine where the stock might be headed. One of the most common is the Price to Earnings Ratio or P/E Ratio. This is calculated by taking the current share price and dividing it by the forecasted earnings per share. As of writing, Arthur J. Gallagher & Co. has a price to earnings ratio of 23.80. Taking a step further, investors can also look to a firm’s price to earnings growth or PEG ratio. The stock has a current PEG of 1.96 .
Some other technicals to consider would be the moving averages of the company. In comparing the current price level of the equity to their moving averages, the shares are trading $1.13 off of the 50-day average of $57.89 and $2.65 away from the 200-day moving average of $56.37 .
Another important factor to consider when evaluating a stock’s current and future value are the 52 week high and low levels. As of the most recent bid at the time of writing, Arthur J. Gallagher & Co. shares are trading -1.04% away from the 52-week high mark of 59.64 and +25.15% off the 52-week bottom of 47.16.