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Based in London, Willis Towers Watson Public Limited Company (WTW) operates as an advisory, broking, and solutions company. Valued at a market cap of $29.6 billion, the company delivers solutions that manage risks, optimize benefits, and expand capabilities.
Shares of this insurance broker have outperformed the broader market over the past 52 weeks. WTW has rallied 39.8% over this time frame, while the broader S&P 500 Index ($SPX) has gained 25%. In 2024, shares of WTW are up 20.4%, compared to SPX’s 17.9% gain on a YTD basis.
Zooming in further, WTW has outpaced the SPDR S&P Insurance ETF’s (KIE) 32% gain over the past 52 weeks but has lagged behind the exchange-traded fund’s 23.8% returns on a YTD basis.
Shares of WTW surged nearly 4% on Jul. 25 following its Q2 earnings release. Revenue grew 5% to $2.3 billion for the quarter, while adjusted diluted EPS rose 24% to $2.55 year over year. The company expects to deliver full-year earnings in the $16-$17 range.
For the current fiscal year, ending in December, analysts expect WTW’s EPS to grow 13.9% year over year to $16.51.The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 19 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, two “Moderate Buys,” and eight “Holds.”
The configuration is slightly more bullish than three months ago, with eight analysts suggesting a “Strong Buy.”
On Jul. 26, CFRA upgraded Willis Towers Watson’s rating to “Buy” and raised the price target to $315.
The mean price target of $313.29 represents a premium of 8.6% to WTW’s current levels. The Street-high price target of $335 implies a potential upside of 16.1% from the current price.
On the date of publication, Rashmi Kumari 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.
