Arthur J. Gallagher & Co. AJG announced an alliance with Special Olympics, which is a sports organization that intends to empower disabled people.
Apart from making Arthur J. Gallagher the Platinum Partner of Special Olympics, the tie-up is expected to enhance physical fitness and confidence of intellectually disabled athletes. The partnership also aims to offer superior quality training programs for more than five million athletes across the globe.
Being the official sponsor of Special Olympics sport and coach programming, the action further showcases Arthur J. Gallagher’s intentions to promote Special Olympics across the globe. In addition to this, the company will sponsor the World Winter Games and Special Olympics USA Games in 2022.
Shares of the Zacks Rank #3 (Hold) brokerage firm have gained 25.9% in a year, outperforming the industry’s growth of 23.5%.
To date, Arthur J. Gallagher has banked on several buyouts to enhance its capabilities and diversify operations, similar to its industry counterpart Brown & Brown, Inc. (NYSE:BRO) .
However, it has not entered any collaboration since 2018 when it became the title sponsor of the English Premiership. The new move seems to be in line with the company’s efforts to boost long-term growth by enhancing its sports portfolio.
The collaboration is also expected to benefit the company’s Brokerage segment, which includes retail and wholesale brokerage operations. Revenues in the segment, which accounted for 61% of Arthur J. Gallagher’s 2019 revenues, improved 15.4% year over year.
Stocks to Consider
Some better-ranked stocks from the same space are eHealth, Inc. EHTH and Aon plc (NYSE:AON) AON. While currently eHealth sports a Zacks Rank #1 (Strong Buy), Aon plc carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The companies beat the Zacks Consensus Estimate in the last reported quarter by 65.86% and 1.61%, respectively.
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