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Valued at a market cap of $31.5 billion, London, the United Kingdom-based Willis Towers Watson Public Limited Company (WTW) is a leading global advisory, broking, and solutions company. The company offers a wide range of services, including strategy consulting, risk management, insurance brokerage, and benefits administration for health, retirement, and talent solutions.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Willis Towers Watson fits this criterion perfectly. By combining expertise, technology, and data-driven insights, Willis Towers Watson delivers integrated solutions to help clients manage risk, optimize benefits, and enhance organizational performance.
However, the insurance broker has fallen 6.5% from its 52-week high of $334.99, recorded on Dec. 5. Willis Towers Watson shares have risen 6.5% over the past three months, underperforming the broader Nasdaq Composite's ($NASX) 14.7% gain during the same period.
In the long term, WTW stock has gained 29.8% on a YTD basis, lagging behind NASX's 34.4% increase over the same period. Also, WTW has surged 32.3% over the past 52 weeks, compared to NASX's 36.2% gains.
Yet, despite a few fluctuations, WTW has consistently traded above both its 50-day and 200-day moving averages since last year.
Shares of WTW rose nearly 3% on Oct. 31 due to its strong Q3 2024 results, including a nearly 31% year-over-year rise in adjusted profit to $2.93 per share, surpassing estimates. Revenue grew almost 6% to $2.3 billion, with the Risk & Broking segment delivering a 10% increase to $940 million and the Health, Wealth & Career segment rising nearly 4% to $1.3 billion. Investors were further encouraged by the company’s strategic decision to divest its Tranzact business, as part of its focus on long-term free cash flow margin goals. The company’s positive full-year 2024 outlook, including revenue expectations above $9.9 billion and projected EPS of $16 - $17, boosted investor confidence.
Nevertheless, in contrast, rival Brown & Brown, Inc. (BRO) outperforms WTW. Brown & Brown shares have climbed 50.3% over the past 52 weeks and a surge of 46.8% on a YTD basis.
Despite WTW's underperformance, analysts remain moderately optimistic about its prospects. Among the 21 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $351.84.
