London, the United Kingdom-based Willis Towers Watson Public Limited Company (WTW) is a leading global advisory, broking and solutions company. It caters to the needs of designs and delivers solutions that manage risk, optimize benefits, and expand capabilities, among others, for numerous businesses worldwide. With a market cap of $32.3 billion, WTW operates through Risk & Broking, and Health, Wealth & Career segments.
Although Willis Towers Watson has lagged behind the broader market over the past 52 weeks, it has outperformed in 2024. WTW stock has surged 33% on a YTD basis and 30.9% over the past year compared to the S&P 500 Index’s ($SPX) 25.8% gains in 2024 and 31.8% returns over the past year.
Narrowing the focus, WTW has lagged behind the Financial Select Sector SPDR Fund’s (XLF) 36.3% gains in 2024 and 45.4% returns over the past year.
Willis Towers Watson’s stock prices rose around 3% after the release of its impressive Q3 earnings on Oct. 31. The company reported strong topline growth and success towards its multi-year Transformation program. WTW’s total revenues grew 5.7% year-over-year to $2.3 billion, which surpassed analysts’ topline estimates, driven by the 9.9% growth in the Risk & Broking segment’s revenues, reaching $940 million. The company has also made progress on its commitment towards improving cash flow and reported 14.1% year-over-year growth in the preceding three quarters’ free cash flow, totaling $807 million.
Furthermore, the company reported a staggering 30.8% year-over-year growth in adjusted EPS to $2.93, surpassing analysts’ consensus estimates by 9.3%, bolstering investor confidence. WTW expects the business momentum to continue into Q4 and deliver on its targets for the year.
For the current fiscal year, ending in December, analysts expect WTW to report a 15.3% year-over-year growth in adjusted EPS to $16.70. Moreover, the company has a robust earnings surprise history. It has surpassed analysts' earnings estimates in each of the past four quarters.
WTW stock has a consensus “Moderate Buy” rating overall. Out of the 21 analysts covering the stock, nine recommend “Strong Buy,” two advise “Moderate Buy,” nine suggest “Hold,” and one advocates a “Strong Sell” rating.
This configuration is slightly less bullish than three months ago, when no analyst recommended a “Strong Sell” rating.
On Nov. 5, KBW analyst Meyer Shields maintained a “Buy” rating while raising the price target to $359, indicating an 11.9% upside potential from current price levels.
WTW's mean price target of $334.84 represents a modest 4.4% premium to current price levels. Meanwhile, the Street-high target of $369 suggests a notable 15% upside potential.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- What Will Traders be Watching as November Comes to an End?
- Up 42% YTD, How High Can Broadcom Stock Soar in 2025?
- Stock Index Futures Climb as Bond Yields Fall
- 3 'Strong Buy' Large-Cap Stocks to Buy and Hold
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
