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Valued at a market cap of $113.5 billion, Marsh & McLennan Companies, Inc. (MMC) is a global professional services firm providing risk and insurance solutions through Marsh and Guy Carpenter, alongside consulting services via Mercer and Oliver Wyman. Headquartered in New York, it serves businesses, public entities, and private clients worldwide.
The insurance broker's shares have underperformed the broader market over the past 52 weeks. MMC has increased 15.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 22.8%. However, shares of MMC are up 8.8% on a YTD basis, outpacing SPX’s 4.5% gain.
In addition, Marsh & McLennan has lagged behind the Financial Select Sector SPDR Fund’s (XLF) 31.8% return over the past 52 weeks.
Shares of Marsh & McLennan recovered marginally on Jan. 30 due to strong Q4 earnings, with adjusted EPS of $1.87 beating the consensus estimate and reflecting an 11% year-over-year increase. This growth was driven by robust performance in the Marsh unit, particularly in the United States/Canada and international operations, along with higher consulting profits from Oliver Wyman. Additionally, consolidated revenues rose 9.4% year-over-year to $6.1 billion, surpassing expectations.
For the current fiscal year, ending in December 2025, analysts expect MMC’s EPS to grow 9.2% year-over-year to $9.61. The company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 22 analysts covering the stock, the consensus rating is a “Hold.” That’s based on four “Strong Buy” ratings, two “Moderate Buys,” 14 “Holds,” one “Moderate Sell,” and one “Strong Sell.”
On Jan. 31, Evercore ISI analyst David Motemaden maintained a Buy rating and set a $244 price target for MMC.
As of writing, MMC is trading below the mean price target of $235.55. The Street-high price target of $272 implies a potential upside of 17.7% from the current price levels.
