Brown and Brown (BRO) didn't get any pre-earnings buying last week, and had the earnings not been so good I'd cut it from our Growth Stock Journal watchlist.
Even the revenue growth remains higher than the price to earnings ratio, the one caveat is that on Friday they announced that they purchased the independent insurance agency Cooper, Brown and Currie. The company made no statement on the cost of the acquisition or the effect on earnings. In this market environment a company not putting everything on the table is punished, as was BRO last week. The stock gets support at $26, so in both fundamental and technical terms it is a fair price, but the question is perception?
Sam
