We recently compiled a list of the 10 Oversold Insurance Stocks to Buy According to Analysts. Arthur J. Gallagher & Co. (NYSE:AJG) is among the most oversold insurance stocks.

TheFly reported on March 11 that Barclays upgraded AJG to Overweight from Underweight and raised the price target to $262 from $247. According to the firm, the insurance brokerage sector has recently declined due to concerns over AI-driven disruption, but it considers this market reaction excessive. Barclays believes current valuations already reflect slower growth, while underestimating the resilience of the brokerage model and the potential for AI to improve efficiency and margins.

The firm also emphasized that AJG offers stability and the potential to gain from productivity gains through AI integration, making it a potent defensive choice in the current climate.

Separately, Risk Placement Services, Inc. (RPS), the U.S. wholesale brokerage and programs division of Arthur J. Gallagher & Co. (NYSE:AJG), said on March 9 that it had purchased Agoura Hills, California-based S Philips Surety & Insurance Services, Inc. Jeremy Crawford, leader of RPS’s surety operations, will continue to lead the team at S Philips, which specializes in offering surety bonds to agents and brokers on the West Coast. Through the acquisition, RPS’s product offerings are expanded, and its regional surety expertise is strengthened. The transaction’s terms have not yet been made public.

Arthur J. Gallagher & Co. (NYSE:AJG) is a global insurance brokerage and risk management firm providing property, casualty, employee benefits, and consulting services to clients across industries worldwide.

While we acknowledge the potential of AJG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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