Marsh & McLennan: A Mixed Performance Amid Market Trends
Review of Financial Performance and Analyst Insights
Marsh & McLennan Companies, Inc. (MMC), with a market cap of $113.5 billion, operates as a global professional services firm. It offers risk and insurance solutions through its subsidiaries, Marsh and Guy Carpenter, as well as consulting services from Mercer and Oliver Wyman. The company is based in New York, providing services to businesses, public entities, and private clients on a global scale.
Over the past 52 weeks, the performance of MMC’s shares has lagged behind the overall market. Specifically, while MMC has seen a 15.4% increase, the broader S&P 500 Index ($SPX) has appreciated 22.8%. On a year-to-date basis, however, MMC’s shares have shown more strength with an 8.8% increase, compared to the SPX’s modest 4.5% gain.
Furthermore, MMC has not kept pace with the Financial Select Sector SPDR Fund’s (XLF) significant 31.8% return over the same period.
On January 30, MMC’s shares experienced a slight recovery thanks to strong Q4 earnings. The report indicated an adjusted EPS of $1.87, exceeding expectations and demonstrating an 11% increase compared to the previous year. This success was largely fueled by solid results from the Marsh unit, especially in the U.S. and Canada, along with enhanced consulting revenue from Oliver Wyman. Overall revenues increased by 9.4% year-over-year, reaching $6.1 billion and surpassing forecasts.
For the ongoing fiscal year, which ends in December 2025, analysts project a 9.2% growth in MMC’s EPS, anticipating it will reach $9.61. The company has a strong track record of surpassing earnings estimates, having outperformed consensus expectations in each of the last four quarters.
The consensus rating among 22 analysts monitoring this stock suggests a “Hold” status. This includes four “Strong Buy” ratings, two “Moderate Buys,” 14 “Holds,” one “Moderate Sell,” and one “Strong Sell.”
Evercore ISI analyst David Motemaden affirmed a Buy rating on January 31 and set a price target of $244 for MMC.
Currently, MMC is trading below the average price target of $235.55. The highest price target stands at $272, indicating a potential upside of 17.7% from its current price 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.
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