Valued at a market cap of $31.5 billion, London, the United Kingdom-based Willis Towers Watson Public Limited Company (WTW) is a leading global advisory, broking, and solutions company. The company offers a wide range of services, including strategy consulting, risk management, insurance brokerage, and benefits administration for health, retirement, and talent solutions.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Willis Towers Watson fits this criterion perfectly. By combining expertise, technology, and data-driven insights, Willis Towers Watson delivers integrated solutions to help clients manage risk, optimize benefits, and enhance organizational performance.
However, the insurance broker has fallen 6.5% from its 52-week high of $334.99, recorded on Dec. 5. Willis Towers Watson shares have risen 6.5% over the past three months, underperforming the broader Nasdaq Composite's ($NASX) 14.7% gain during the same period.
In the long term, WTW stock has gained 29.8% on a YTD basis, lagging behind NASX's 34.4% increase over the same period. Also, WTW has surged 32.3% over the past 52 weeks, compared to NASX's 36.2% gains.
Yet, despite a few fluctuations, WTW has consistently traded above both its 50-day and 200-day moving averages since last year.
Shares of WTW rose nearly 3% on Oct. 31 due to its strong Q3 2024 results, including a nearly 31% year-over-year rise in adjusted profit to $2.93 per share, surpassing estimates. Revenue grew almost 6% to $2.3 billion, with the Risk & Broking segment delivering a 10% increase to $940 million and the Health, Wealth & Career segment rising nearly 4% to $1.3 billion. Investors were further encouraged by the company’s strategic decision to divest its Tranzact business, as part of its focus on long-term free cash flow margin goals. The company’s positive full-year 2024 outlook, including revenue expectations above $9.9 billion and projected EPS of $16 - $17, boosted investor confidence.
Nevertheless, in contrast, rival Brown & Brown, Inc. (BRO) outperforms WTW. Brown & Brown shares have climbed 50.3% over the past 52 weeks and a surge of 46.8% on a YTD basis.
Despite WTW's underperformance, analysts remain moderately optimistic about its prospects. Among the 21 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $351.84.
On the date of publication, Sohini Mondal 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- Adobe Stock: Buy, Sell, or Hold After Earnings?
- 1 AI Stock Cathie Wood Is Buying Instead of Tesla
- MSFT vs. MSTR: Which Software Stock Should You Buy and Hold?
- Micron: Is the Chip Stock a Buy Before Its Upcoming Earnings?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
