Brown & Brown: #PowerStocks Series Pick Of The Week (March 2025):

What was your reaction to the conversation between President Donald Trump, President Volodymyr Zelenskyy, and Vice President JD Vance? Were you shocked or disappointed? I was taken aback and disappointed. How will this progress? I hope that a peace and security deal can be brokered for the sake of humanity. While the politicians are busy at it, I'm going to turn my attention back to the stock market by reviewing the performance of last month's #PowerStocks picks:

1. Greenbrier: No entry
2. IBM: 1.4%
3. Tyson Foods: 0.5%

The S&P 500 (US stock market) began Feb on the wrong foot, and ended the month more than 1.2% lower. But how did my stock picks fare? Greenbreir's shares fell through its support area, so no trade was taken. IBM's shares pulled back to the price area as expected, and rose thereafter. But last week was brutal. The bulls went into hiding and I'd shifted my stop loss higher to enjoy a 1.4% gain. A review of Tyson Foods' shares will be covered in the next section, so I shall it till then. I'm glad that my stock selection had beaten the performance of the S&P 500 by more than 2 percentage points. Did you enjoy the stock ideas shared in Feb?

Review Of Last Week's Pick Of The Week

Tyson Foods (TSN) was last week's stock pick. It's in the food industry and, therefore, a defensive stock. While the S&P 500 dropped last week, the share price of Tyson Foods rose by more than 1.4%! During the week, its share price had also reached the support area I've identified. Guess what happened next? It rose higher from there. Where is my price target for Tyson Foods? In case you missed it, I've shared it in my Telegram Channel. I know and understand that the allure of high returns without effort is highly attractive. It breaks my heart when I hear of people falling for impersonation scams.

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Why Is Swing Trading Brown & Brown (BRO) Worth It?

Source: bbinsurance.com

Brown & Brown is in the Financials sector, providing various insurance products to individuals and businesses. The S&P 500 has been breathless since the start of 2025, rising only 1.38%. In contrast, Brown & Brown's shares have risen by more than 16.1% year-to-date! This stock has also been secretly exploding upwards in price, with each explosive upmove bringing returns between 4% and 14%. A pullback is around the corner, and this could be my chance to buy its shares for an explosive swing trade. At which price will I be looking to buy its shares? Continue reading to get the details. P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs Brown & Brown (BRO)

Have you head of the saying "The trend is your friend"? I think that the trend is your spouse. Because my spouse is right all the time, I'm going to follow the trend. Ok, jokes aside. Looking at the chart above, Brown & Brown's share price began trending higher from Jan 2025. To minimize my risk and maximize my chances of profiting from the market, I'm looking for a buying opportunity. But, does buying the shares of Brown & Brown make sense? I'll compare the performance of its shares against the S&P 500. In the last 3 months, the S&P 500 had experienced a drop of 1.3%. On the other hand, Brown & Brown shares have experienced a rise of 4.8%! This outperformance of 6.1 percentage points speaks volumes about the strength of Brown & Brown's shares. Since this uptrend will likely continue, I'd like to continue analyzing its shares.

How Explosive Is Brown & Brown (BRO)?

Money is hard-earned, so I'm not going to throw it into stocks without proper analysis. To make my money work hard for me, I want the stocks I buy to explode upwards in price quickly. So, let's find out whether the shares of Brown & Brown share this trait. I've marked out the explosive upmoves its shares have enjoyed in the past 11 months. Enjoying a huge market capitalization of over $33b, the ability of Brown & Brown's shares rising above 4% repeatedly is a feat! Its shares have risen between 4% and 14% 11 times! This huge market capitalization is also reassuring because the shares of companies with a market capitalization over $1b are generally harder to manipulate. In the next section, I'll answer the most important question: Should I buy its shares now for an explosive swing trade?

Key Price Levels

Taking action is the last step. But when should I click the Buy button? Let me uncover a key price level on the chart of Brown & Brown's shares. This key level acts as a support area, which means that when the share price of Brown & Brown reverses, it could reach this price area and rise thereafter. So, instead of rushing to buy its shares now, I'll patiently wait for its share price to dip to around $112.50 and bounce. This approach has saved me from countless heartache and money. Here's a pro tip: Instead of staring at your screen, you may want to set a price alert on your broker's platform to be notified so that you can spend precious time with your loved ones.

Which Instrument Should You Consider Using?

  Do you ever wonder about the instrument used to trade explosive stocks? With 3 main trading instruments available - stocks, contract-for-difference (CFD), and options, you wonder which suits you best. Since stocks (as an instrument) is easy to understand, I shall focus on CFD and options. Here are the main similarities and differences: CFD works like a mirror to stocks. When a stock rises $1, its CFD rises $1. However, due to its unique pricing mechanism, your options price doesn't rise by the same amount. In fact, depending on the market conditions, the price of your options contract may even drop! Your CFD broker will charge you a finance fee for lending you money for your trade. However, no lending is required for options, so there is no finance charge. Because there's a finance charge by your CFD broker, CFD is not the ideal instrument for mid to long-term trades. On the other hand, options allow you to implement different strategies across time horizons. Both CFDs and options are leveraged instruments because they allow you to control a larger market position with a smaller amount of capital. While CFDs do not have an expiration date, options traders must pay attention to the expiration date of their options contracts. You must be thinking, "What's the beauty of trading options?" Options are like smartphones. You can choose to use a smartphone for its basic or advanced functions.

And options don't have to be all about Math and dry!

It can be made easy to understand through real-life analogies.

In the same way, you can implement basic and/or highly advanced strategies depending on your level of comfort. Options allow you to be versatile in adapting to the shifting market conditions and capturing opportunities in the process. Are you a CFD or options trader? I'm glad to be fluent in both. Finally, this is for educational purposes. Please perform your due diligence. All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.

Claim Your Free (Limited Time) Stock Course Right Now:

The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!