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London, the U.K.-based Willis Towers Watson Public Limited Company (WTW) is a global advisory, broking, and solutions company, with a market cap of $29.7 billion. Operating within the professional services industry, the company provides expertise in risk management, insurance brokerage, and consulting services.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Willis Towers Watson fits this criterion perfectly, exceeding the mark. WTW's uniqueness in the market lies in its ability to seamlessly integrate advanced data analytics, technology-driven insights, and a broad range of risk management and human capital solutions on a global scale.
However, the insurance broker has slipped 1.9% from its 52-week high of $296.45, achieved on Sep. 3. Shares of WTW have increased 13.6% over the past three months, outpacing the broader S&P 500 Index ($SPX), which has seen gains of 3.5% during the same period.
In the longer term, WTW is up 20.5% on a YTD basis, outperforming SPX's almost 18% gains. Moreover, shares of Willis Towers Watson have surged 43.1% over the past 52 weeks, compared to SPX's 25.9% returns over the same time frame.
To confirm the bullish price trend, WTW has been trading above its 200-day and 50-day moving averages since October last year despite a few fluctuations.
Willis Towers Watson has outperformed due to its expansion into AI-driven analytics and technology services has positioned it well to capitalize on productivity gains and cost reductions in various industries. Moreover, the stock soared nearly 4% on Jul. 25 following a better-than-expected adjusted EPS of $2.55, driven by robust results in its risk and brokerage business. The company also raised its annual profit forecast, reflecting increased business spending on insurance products despite higher prices.
To highlight the stock's outperformance, its rival Aon plc (AON) is underperforming WTW. AON stock has gained 3.7% over the past 52 weeks and is up 19.5% on a YTD basis.
Despite the stock’s strong price action, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 20 analysts in coverage, and the mean price target of $311.33 is a premium of only 7.1% to current levels.
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.
