HomeMost PopularInvestingIs Willis Towers Watson (WTW) a Good Addition to Your Investment Portfolio?

Is Willis Towers Watson (WTW) a Good Addition to Your Investment Portfolio?

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Willis Towers Watson Public Limited Company (WTW) has been experiencing growth in various areas, which can make it an attractive option for investors. In this article, we will analyze the company’s growth projections, assess its business tailwinds, and explore the potential benefits of retaining WTW in your investment portfolio. Additionally, we will compare WTW to other stocks in the property and casualty insurance industry to provide you with a comprehensive understanding of its investment potential.

Growth Projections

According to the Zacks Consensus Estimate, Willis Towers is expected to achieve a 3.65% increase in earnings per share for 2023, with revenues projected to grow by 5.3%. For 2024, earnings per share are forecasted to increase by 14.4%, accompanied by a 5.5% increase in revenues.

Zacks Rank & Price Performance

Currently holding a Zacks Rank #3 (Hold), Willis Towers’ stock has gained 5.4% over the past year, underperforming the industry’s growth of 24.9%.

Business Tailwinds

Willis Towers’ Health, Wealth & Career segment is expected to benefit from higher demand for products and advisory work, new client appointments, and growing healthcare premiums. The Corporate Risk and Broking segment is also predicted to experience growth, driven by double-digit growth in key business lines, improved client retention, and contributions from construction and M&A solutions. Furthermore, increased software sales and advisory work will continue to drive growth in the Insurance Consulting and Technology business.

Willis Towers Watson has implemented a growth strategy that focuses on core opportunities with high growth and returns. The company has also pursued strategic acquisitions to expand its geographical footprint, enhance capabilities, and strengthen its portfolio.

The company’s strong balance sheet and steady cash flow position it well for capital deployment activities such as buybacks, dividend payouts, debt repayments, and investment opportunities. Willis Towers remains committed to enhancing shareholder value, as evidenced by its consistent dividend growth and share repurchases.

Stocks to Consider

If you’re considering investing in the property and casualty insurance industry, you may want to evaluate alternative options. Axis Capital Holdings Limited (AXS), Chubb Limited (CB), and Cincinnati Financial Corporation (CINF) are better-ranked stocks in the industry. Axis Capital is currently ranked #1 (Strong Buy), while Chubb and Cincinnati Financial hold a Zacks Rank #2 (Buy).

Axis Capital boasts a solid track record of beating earnings estimates and has gained 17.2% over the past year. Chubb has also consistently beaten earnings estimates and achieved a 16.7% increase in stock price. Cincinnati Financial has a strong track record of beating earnings estimates with a 15.8% increase in stock price.

Conclusion

While Willis Towers Watson has demonstrated growth potential and is well-positioned to capitalize on various business tailwinds, it is essential to evaluate alternative investment opportunities in the property and casualty insurance industry to make an informed investment decision. Axis Capital, Chubb, and Cincinnati Financial are worth considering alongside Willis Towers Watson. Conducting thorough research and analysis will help you determine the best fit for your investment portfolio.

Disclaimer: The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.

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