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Headquartered in New York City, Marsh & McLennan Companies, Inc. (MMC) is a global professional services firm with a market cap of $112.1 billion. Specializing in risk management, insurance brokerage, consulting, and investment advisory services, Marsh & McLennan plays a pivotal role in helping organizations navigate complex challenges across industries.
Shares of MMC have underperformed the broader market considerably over the past year. The stock has gained 15.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 25.6%. However, in 2024, MMC is up 20.1%, compared to the SPX’s 18.4% rise on a YTD basis.
Narrowing the focus, the MMC's underperformance looks more pronounced when measured against the SPDR S&P Insurance ETF (KIE). The exchange-traded fund has gained 33.2% over the past year.
On Jul. 18, MMC declined 1.5% after reporting Q2 results. The company reported a profit of $1.13 billion, or $2.41 per share, surpassing Wall Street expectations of $2.39 per share. However, the company's revenue of $6.22 billion fell short of the analysts’ expectations of $6.28 billion.
For the current fiscal year, ending in December, analysts expect MMC’s EPS to grow 9.4% year over year to $8.74 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in all four quarters.
Among the 21 analysts covering MMC stock, the consensus rating is a “Hold.” That’s based on four “Strong Buy” ratings, one “Moderate Buy,” 14 “Holds,” one “Moderate Sell,” and one “Strong Sell.”
This configuration is slightly more bullish than a month ago, with three analysts suggesting a “Strong Buy.”
On Aug. 19, Morgan Stanley analyst Bob Huang maintained a “Hold” rating on Marsh & McLennan Companies, with a price target of $225, which indicates that the stock trades at a premium. The stock also trades at a premium to the mean price target price of $223.10. However, the Street-high price target of $240 suggests an upside potential of 5.5%.
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.
