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With a market cap of $103.4 billion, Marsh & McLennan Companies, Inc. (MMC) is a global professional services firm specializing in risk, strategy, and people solutions. The New York-based company operates in the insurance brokerage and consulting sectors, offering a range of services, including risk management, insurance broking, and strategic advisory.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Marsh & McLennan fits this criterion perfectly. For over 150 years, Marsh & McLennan has been guiding business leaders, leveraging a unique blend of expertise and data-driven insights to drive game-changing success for clients worldwide.
However, Marsh & McLennan trades slightly below its 52-week high of $211.53, achieved last month. Despite this recent pullback, shares of Marsh & McLennan increased 1.9% over the past three months, surpassing the broader Dow Jones Industrials Average's ($DOWI) marginal loss over the same time frame.
Longer term, MMC is up 10.4% on a YTD basis, overshadowing the DOWI's 3.7% gains. Moreover, shares of Marsh & McLennan have surged 17.1% over the past 52 weeks, compared to Dow Jones' 14.7% returns over the same time frame.
To confirm the bullish price trend, MMC stock has been trading above its 200-day moving average since April last year and remained mostly above its 50-day moving average during this period despite some fluctuations.
Marsh & McLennan has outperformed due to sustained demand for its products, consistent new business growth, frequent strategic acquisitions, commendable financial strength, and impressive operational efficiency. Moreover, the stock surged nearly 2.1% on April 18 following its Q1 earnings results, which topped Wall Street forecasts, driven by strong performance across its different segments, despite being partially offset by elevated operating costs.
Highlighting MMC's outperformance, its top rival, Aon plc (AON), is underperforming MMC, as evidenced by a decline of 8% over the past year while showing marginal gains on a YTD basis.
Despite the stock's impressive gains over multiple timeframes, analysts are cautious about its prospects. The stock has a consensus “Hold” rating overall from the 19 analysts covering the stock. It is currently trading above the mean price target of $208.56.
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.
