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New York-based Marsh & McLennan Companies, Inc. (MMC) provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. With a market cap of $112.8 billion, Marsh & McLennan operates through Risk and Insurance Services, and Consulting segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Marsh & McLennan fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the insurance brokerage industry. It serves businesses, public entities, insurance companies, associations, professional services organizations, and private clients.
Marsh & McLennan hit its all-time high of $231.91 in today's trading session before slightly pulling back. MMC stock gained 11% over the past three months, slightly outpacing the S&P 500 Financials Sector SPDR’s (XLF) 10.3% gains during the same time frame.
Over the longer term, MMC has underperformed the XLF. MMC gained 18.2% over the past 52 weeks, lagging behind XLF’s 31% gains during the same time frame. However, in 2024, MMC is up 22.1%, outpacing XLF’s 20.9% returns on a YTD basis.
To confirm the bullish trend, MMC has been consistently trading above its 200-day moving average over the past year and above its 50-day moving average since late May.
Shares of Marsh & McLennan dipped 1.5% after the release of its Q2 earnings on Jul. 18. The company reported a 5.9% year over year growth in revenue, totaling $6.2 billion, which fell short of Wall Street’s expectations. Its risk and insurance services segment revenue rose 8.1% to $4 billion. However, the consulting segment’s revenue growth was more modest, growing at 2% to $2.2 billion.
However, Marsh & McLennan has thrived despite macroeconomic hurdles, thanks to steady product demand, consistent new business growth, smart acquisitions, and strong financials, all backed by operational efficiency.
Marsh & McLennan’s competitor, Arthur J. Gallagher & Co. (AJG), has outperformed MMC. AJG gained 28.9% over the past 52 weeks and 32.4% in 2024.
Among the 21 analysts covering the MMC stock, the consensus rating is a “Hold.” Although MMC is trading above its mean target price of $223.10, the Street-high target of $240 represents a potential upside of 3.7% from current price levels.
On the date of publication, Aditya Sarawgi 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.
