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London, the United Kingdom-based Willis Towers Watson Public Limited Company (WTW) is an advisory, broking, and solutions company that offers strategy and design consulting, plan management service and support, broking and administration services for health, wellbeing, and other group benefit programs. The company is valued at a market cap of $33.3 billion.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and WTW fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the insurance brokers industry. The company’s strength lies in its ability to provide tailored solutions that help organizations manage risk, optimize employee benefits, and drive business performance. WTW’s extensive expertise in actuarial and investment consulting enables it to support clients in making informed financial and strategic decisions. Additionally, its broking services, including insurance and reinsurance, enhance risk mitigation for businesses worldwide.
This financial company is currently trading 2.8% below its 52-week high of $344.14, reached on Mar. 4. Shares of WTW have surged 5.3% over the past three months, outpacing the broader Dow Jones Industrials Average’s ($DOWI) 2.1% decline during the same time frame.
In the longer term, WTW has rallied 21.8% over the past 52 weeks, outperforming DOWI’s 6.2% uptick over the same time frame. Moreover, on a YTD basis, shares of WTW are up 6.8%, compared to DOWI’s 1.4% loss.
To confirm its bullish trend, WTW has been trading above its 200-day moving average since the past year, and has remained above its 50-day moving average since mid-June 2024, with some fluctuations.
On Feb. 4, shares of WTW dropped 3.1% following its Q4 earnings release as the company’s revenue of $3 billion marginally missed Wall Street’s expectations. While revenue grew 4.2% year-over-year, it fell short of estimates due to weaker-than-expected growth in the Health, Wealth & Career segment.
On the brighter side, WTW's adjusted operating margin expanded by 190 basis points, driven by cost savings from its transformation program. As a result, adjusted earnings rose 9.3% year-over-year to $8.13 per share, surpassing analyst expectations by 1.5%.
WTW has outpaced its rival, Marsh & McLennan Companies, Inc.’s (MMC) 13.5% gain over the past 52 weeks but has lagged behind MMC’s 9.8% uptick on a YTD basis.
Given WTW’s recent outperformance relative to the Dow, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 21 analysts covering it, and the mean price target of $361.68 suggests an 8.1% premium to its current levels.
