5-Star Stocks Poised to Pop: Brown & Brown

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, insurance broker Brown & Brown (NYSE: BRO) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Brown & Brown's business and see what CAPS investors are saying about the stock right now.

Brown & Brown facts

Headquarters (Founded)

Daytona Beach, Fla. (1956)

Market Cap

$2.74 billion

Industry

Insurance brokers

Trailing-12-Month Revenue

$989.6 million

Management

CEO J. Powell Brown (since July 2009)

COO Jim Henderson (since December 2002)

Return on Equity (Average, Past 3 Years)

16.3%

Dividend Yield

1.5%

Other Highly Rated Insurance Stocks

Berkshire Hathaway (NYSE: BRK-A)

Chubb (NYSE: CB)

CAPS Members Bullish on BRO Also Bullish on

Johnson & Johnson (NYSE: JNJ)

Google (Nasdaq: GOOG)

CAPS Members Bearish on BRO Also Bearish on

D.R. Horton (NYSE: DHI)

Radian Group (NYSE: RDN)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 93% of the 126 members who have rated Brown & Brown believe the stock will outperform the S&P 500 going forward. These bulls include TMFmrquakeroats and All-Star Grinnell4Eva, who is ranked in the top 6% of our community.

Just two days ago, TMFmrquakeroats explained how owning the stock would put Fools in fabulous company:

[Sequoia Fund] has owned [Brown & Brown] for several years and it's rated 5 stars. According to Sequoia Fund's managers, [Brown & Brown] did a good job replacing their previous CEO who retired recently. Any company rated 5 stars in CAPS with great long-term prospects that can develop their own managerial talent is worth digging in to.

In a pitch from 2008, Grinnell4Eva expanded on Brown & Brown as a great way to make green:

Brown & Brown is a well-managed company that has weather the soft market better than most. Assuming we're on the tail end of the soft market, I see Brown & Brown gaining organic pricing power in the next year. That said, Brown & Brown has historically grown by acquisition anyway, and smaller agencies and brokerages that are taking a serious hit from soft prices should make for accretive acquisition opportunities in the near term.

What do you think about Brown & Brown, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Berkshire Hathaway  is a Motley Fool Stock Advisor and Inside Value pick, Johnson & Johnson is an Income Investor choice, and Google is a recommendation of Rule Breakers. The Fool owns shares of Berkshire. The Fool's disclosure policy always gets a perfect score.

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