Willis Towers Watson: A Look at Performance and Market Position
Willis Towers Watson Public Limited Company (WTW), headquartered in London, operates as a prominent global advisory, broking, and solutions firm. With a market capitalization of $31.5 billion, WTW provides a variety of services that include strategy consulting, risk management, insurance brokerage, and benefits administration for health, retirement, and talent solutions.
WTW’s Market Standing and Stock Performance
Companies valued at $10 billion or more are categorized as “large-cap” stocks, and Willis Towers Watson meets this classification. By leveraging expertise, technology, and data-driven insights, WTW aims to deliver integrated solutions that help clients manage risks, optimize benefits, and boost organizational performance.
Recently, WTW experienced a decline of 6.5% from its 52-week high of $334.99 recorded on December 5. While WTW shares have risen by 6.5% over the last three months, this growth trails the Nasdaq Composite’s (NASDAQ) impressive 14.7% increase during the same time frame.
Long-Term Stock Trends
When examining long-term performance, WTW stock has increased 29.8% on a year-to-date (YTD) basis. However, this figure falls short compared to the NASDAQ’s 34.4% rise in the same period. Over the last year, WTW shares have increased by 32.3%, contrasting with NASDAQ’s 36.2% gains.
Despite some ups and downs, WTW has consistently traded above both its 50-day and 200-day moving averages since last year.
Recent Financial Results and Future Outlook
On October 31, WTW shares surged nearly 3% following the release of its strong Q3 2024 results. The company reported a year-over-year increase of nearly 31% in adjusted profit, reaching $2.93 per share, which exceeded estimates. Revenue also climbed almost 6% to $2.3 billion, with the Risk & Broking segment growing by 10% to $940 million, and the Health, Wealth & Career segment increasing nearly 4% to $1.3 billion. Investors reacted positively to WTW’s strategic decision to divest its Tranzact business, aligning with its long-term goals for free cash flow margins. The company’s encouraging full-year 2024 outlook includes revenue expectations exceeding $9.9 billion and projected earnings per share (EPS) of $16 – $17.
In contrast, rival Brown & Brown, Inc. (BRO) shows stronger performance. Brown & Brown shares have increased by 50.3% over the past year and surged 46.8% on a YTD basis.
Analysts’ Perspectives on WTW
Despite WTW’s recent struggles, analysts maintain a moderately optimistic view on its future. Currently, 21 analysts cover the stock, giving it a consensus rating of “Moderate Buy.” Notably, WTW shares are trading below the average price target of $351.84.
On the publication date, Sohini Mondal did not hold positions in any of the securities mentioned in this article. All information and data in this article are intended for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
The views presented in this article are the author’s own and do not reflect those of Nasdaq, Inc.
