Is Willis Towers Watson Stock (WTW) a Good Investment? (2023)

Learn more about whether Willis Towers Watson PLC is a good stock to buy or sell based on recent news as well as its key financial metrics. Read on to find out how (WTW) grades on certain investment factors and determine whether it meets your investment needs.

Latest Willis Towers Watson PLC Stock News

As of November 11, 2022, Willis Towers Watson PLC had a $25.1 billion market capitalization, putting it in the 94th percentile of companies in the Insurance - Multiline & Brokers industry.

Currently, Willis Towers Watson PLC’s price-earnings ratio is 27.6. Willis Towers Watson PLC’s trailing 12-month revenue is $8.9 billion with a 31.8% profit margin. Year-over-year quarterly sales growth most recently was -1.0%. Analysts expect adjusted earnings to reach $13.375 per share for the current fiscal year. Willis Towers Watson PLC currently has a 1.4% dividend yield.

Insurance brokers stand to continue strong in the aftermath of heavy worldwide losses, specifically from Covid-19. The scale to which the companies can continue is directly tied to the economic recovery from the pandemic, mainly the demand for brokering and consulting services. Many of the companies in this sub-industry rely on the revenues from their consulting services, which are expected to regain traction coming as economic activity ramps up past pre-pandemic levels. Many companies refrained from projects as cost savings measures this past year, something that is unlikely to happen again given the decline in infection rates and the increase of total population vaccinations. Margins for the industry are expected to increase over the historical levels, as many insurance companies are still employing cost savings measures to offset the losses suffered in 2020. Many companies in this sub-industry also engage in healthcare and benefits consulting, a figure that is poised to rise given the legislation proposed by the Biden administration. The commitment to the Affordable Care Act is seen as a positive, but there are still regulatory hurtles that need to be jumped for these changes to be implemented. According to a report published by Research Dive, the global insurance brokerage market is projected to register a revenue of $515.3 billion at a compound annual growth rate (CAGR) of 5.4% during the forecast period (2021-2028), increasing from $317.9 billion in 2020.

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Grading Willis Towers Watson PLC Stock

Before you choose to buy, sell or hold Willis Towers Watson PLC stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (WTW) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Willis Towers Watson PLC’s stock grades for value, growth and quality. Learn more about A+ Investor here!

(Video) 🔴 Willis Towers Watson PLC WTW Stock Trading Facts 🔴

Willis Towers Watson PLC Stock Growth Grade

Growth Grade:

Metric Metric Score WTW Sector Median
Sales Growth 5yr Ann'l 63 2.7% 7.4%
Sales Increases YoY Last 5 yrs 68 4 of 5 3 of 5
Cash from Operations Ann'l Positive Last 5 yrs 65 5 of 5 5 of 5

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the Growth Score and assign it a letter grade, the percentile ranks for each of the three individual components—consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations—must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered Very Weak, while those in the top 20% receive A grades, which are considered Very Strong.

Willis Towers Watson PLC has a Growth Score of 76, which is Strong.

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Willis Towers Watson PLC Stock Momentum Grade

Momentum Grade:

MetricScoreWTWSector Median
Relative Price Strength (Q1) 84 15.9% 9.7%
Relative Price Strength (Q2) 58 (2.2%) (8.1%)
Relative Price Strength (Q3) 63 6.6% 9.4%
Relative Price Strength (Q4) 67 (2.6%) 2.2%
Relative Price Strength (weighted 4 qtr) 82 6.8% 4.6%
(Video) A LONG TERM GOLDEN STAR! Is Willis Towers Watson (WLTW) Stock a BUY?

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Willis Towers Watson PLC has a Momentum Score of 82, which is Very Strong.

Willis Towers Watson PLC Stock Earnings Estimate Revisions Grade

Estimate Revisions Grade:

Metric Score WTW Sector Median
Quarterly Surprise SUE Latest Qtr 47 0.6 0.6
Quarterly Surprise SUE Prior Qtr 41 0.3 0.9
EPS Est Current Year % Rev Last Month 33 (1.2%) 0.0%
EPS Est Current Year % Rev 3 Mos 45 0.0% 0.1%

The Earnings Estimate Revisions Score considers the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises—or at least continued sales growth (the exact opposite is generally true, too).

(Video) 🔴 Willis Towers Watson WTW Stock Trading Facts 🔴

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. The Earnings Estimate Revisions Score is based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Willis Towers Watson PLC has an Earnings Estimate Revisions Score of 42, which is Average.

Other Willis Towers Watson PLC Stock Grades

In addition to Growth, Momentum and Estimate Revisions, A+ Investor also provides grades for Value and Quality.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the Quality Grade is the percentile rank of the composite return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether Willis Towers Watson PLC’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.

Is Willis Towers Watson Stock (WTW) a Good Investment? (3)

(Video) Aon to Buy Willis Towers Watson

Should I Buy Willis Towers Watson PLC Stock?

Overall, Willis Towers Watson PLC stock has a Growth Grade of B, Momentum Grade of A Earnings Estimate Revisions Grade of C.

Whether or not you should buy Willis Towers Watson PLC stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.

Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how Willis Towers Watson PLC stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.

Willis Towers Watson PLC (WTW) Competitors

Companies similar to Willis Towers Watson PLC in the Insurance - Multiline & Brokers industry.

Company name Ticker Market Cap
BRO $16.05Bil
Hartford Financial Services Group Inc HIG $23.42Bil
AJG $39.22Bil
Aon PLC AON $60.61Bil
Chubb Ltd CB $85.61Bil

Willis Towers Watson PLC Stock: Bottom Line

You can use the information about how Willis Towers Watson PLC stock is graded to determine if you should invest in this specific company. However, you should decide whether Willis Towers Watson PLC stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.

We encourage investors to do their own due diligence and research through programs of education that teach you to invest for yourself. In this way, you can effectively become a manager of your own wealth—without having to rely on others for your financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

(Video) Willis Towers Watson changes the stock symbol to "WTW"

So, if you’re still on the fence about whether Willis Towers Watson PLC stock is a buy, sell or hold, you can utilize our expansive and robust screening tools like A+ Investor to help make your decision.

A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs and understand your portfolio at a more detailed level.

Is Willis Towers Watson Stock (WTW) a Good Investment? (4)


FAQs

Is Willis Towers Watson a buy? ›

Willis Towers Watson Public has received a consensus rating of Buy.

Who did Willis Towers Watson merge with? ›

WTW was formed through the merger of Willis Group and Towers Watson in 2016 - a deal that came just six years after Towers Perrin and Watson Wyatt combined to form Towers Watson in 2010.

Who is buying the Willis Tower? ›

UPDATED May 24, 2022, 3:35 p.m.: Blackstone unveiled its $500 million bet on Willis Tower, once the world's tallest skyscraper, a renovation five years in the making that turned into a wager workers will return to the office as Covid wanes.

Does Willis Towers Watson give bonuses? ›

Employees are paid on the 15th and last day of each month via payroll direct deposit. You will participate in the Willis Towers Watson Discretionary Individual Bonus Program. The bonus year runs from January 1 to December 31, and bonuses are payable annually, usually in March.

Is WTW a good company? ›

Overall a good place to work.

Good work-life balance. Opportunity to learn and gain all possible in depth knowledge and various technicalities of Insurance sector. Overall a very good place to work.

Is WTW a Fortune 500? ›

Acquired by Willis Towers Watson (formerly Willis Group Holdings).
...
Company Info.
IndustryDiversified Outsourcing Services
Fortune 500 Rank676
Fortune 500 Profilehttp://fortune.com/fortune500/towers-watson-676
Global 500 Rank-
6 more rows

How big is WTW? ›

Overview. WTW operates in more than 140 countries and has a workforce of more than 40,000 employees. It joined the Hedge Fund Standards Board and follows the voluntary code of standards of best practice endorsed by its members.

How much would it cost to buy the Willis Tower? ›

The Blackstone Group will buy Chicago's Willis Tower for $1.3 billion, the highest price ever paid for an American office tower outside of New York City. The 110-story office tower, formerly called the Sears Tower, is a landmark in Chicago and one of the tallest buildings in the world.

How much does it cost to buy the Willis Tower? ›

Willis Tower was purchased by Blackstone in 2015 for $1.3 billion.

How much is the Sears Tower worth now? ›

SEARS TOWER: THE LONG AND THE SHORT OF IT Estimated current sale value: At least $1 billion Estimated building costs: $150 million to $200 million in 1973 (year of completion) Height: 1,454 feet, or 110 stories tall. Two 253-foot TV antennae on top.

How much does the CEO of Willis Towers Watson make? ›

$20,302,549

Which company pays highest joining bonus? ›

The 15 Tech Companies With the Highest Signing Bonuses
  • Apple.
  • Twitter.
  • Fitbit.
  • Linkedin | Facebook.
  • Airbnb.
  • Bloomberg | Getty Images.
  • Microsoft Life | Facebook.
  • Tesla.
6 Nov 2017

Does Babban Gona pay well? ›

The average salaries for Babban Gona is 114,975 Naira.

Is Aon buying Willis Towers Watson? ›

DUBLIN, July 26, 2021 /PRNewswire/ -- Aon plc (NYSE: AON) and Willis Towers Watson (NASDAQ: WLTW) announced today that the firms have agreed to terminate their business combination agreement and end litigation with the U.S. Department of Justice (DOJ). The proposed combination was first announced on March 9, 2020.

Is Gallagher buying Willis? ›

The acquisition of Willis Re creates a reinsurance brokerage approaching $1 billion in annualized revenue and makes Gallagher Re the world's third-largest reinsurance brokerage. The deal will also enhance Gallagher's insurance brokerage operations, said J.

Does Willis Towers Watson have a pension plan? ›

Willis Towers Watson Pension Plan For U.S. Employees General Information. Willis Towers Watson Pension Plan For U.S. Employees is a single-employer, non-contributory, defined benefit corporate pension based in Arlington, Virginia.

What is WTW known for? ›

WTW is a global advisory, broking, and solutions company that provides products and services to clients to help them manage risk, cultivate talent, and optimise benefits, while protecting and strengthening institutions and individuals.

Who are WTW competitors? ›

Willis Towers Watson's competitors. Willis Towers Watson's competitors and similar companies include Brookfield Business Partners, Aon, Verisk Analytics, Robert Half, Cognizant, Accenture and Gallagher.

Who owns WTW? ›

Willis Towers Watson PLC (NASDAQ:WTW)

Institutional investors hold a majority ownership of WTW through the 100.88% of the outstanding shares that they control. This interest is also higher than at almost any other company in the Insurance Brokers/Services industry.

Does Warren Buffett Own Aon stock? ›

Warren Buffett's position in Aon plc. is currently worth $1.23 Billion. That's 0.39% of their equity portfolio (24th largest holding). The investor owns 2.15% of the outstanding Aon plc. stock. Warren Buffett acquired their 4.4 Million shares in 2021.

Is Aon a buy or sell? ›

AON has received a consensus rating of Hold. The company's average rating score is 1.63, and is based on no buy ratings, 5 hold ratings, and 3 sell ratings.

Why did the Aon WTW merger fail? ›

London-based advisory insurance and risk management broker Willis Towers Watson has rehired Andrew Krasner, a former executive, as CFO, part of its effort to realign its strategic priorities following its attempted merger with Aon, which failed because of antitrust concerns.

Is Willis owned by Aon? ›

The world's largest deal in history in the insurance broker and risk management landscape – the $30 billion acquisition of Willis Towers Watson by Aon – has been called off.

What is property treaty insurance? ›

Treaty reinsurance is insurance purchased by an insurance company from another insurer. The company that issues the insurance is called the cedent, who passes on all the risks of a specific class of policies to the purchasing company, which is the reinsurer.

Who owns Arthur J Gallagher? ›

Arthur J. Gallagher & Co.
TypePublic
Key peopleJ. Patrick Gallagher, Jr. (chairman, president, & CEO); Douglas K. Howell (vice president & CFO)
ProductsInsurance Reinsurance
RevenueUS$7.003 Billion (Fiscal Year Ended December 31, 2020)
Operating incomeUS$906.5 Million (Fiscal Year Ended December 31, 2020)
12 more rows

Which company pays the highest pension? ›

Rankings by Total Assets
RankProfileType
1.Panasonic Holdings Corporation Pension FundCorporate Pension
2.Toshiba Pension FundCorporate Pension
3.Denso Pension FundCorporate Pension
4.DIC Pension FundCorporate Pension
91 more rows

Do pension plans pay for life? ›

Because pension plans are intended to provide periodic payments for life, certain forms of payment are required by law. For single employees, the required form of payment is a straight-life annuity, which typically provides a monthly payment based on the plan formula.

Who is the largest retirement service provider? ›

Here's their list of the 2020 top 401(k) providers and followed by my thoughts.
...
2020 TOP PROVIDERS (RECORDKEEPERS)
By Total Defined Contribution Plans
1Paychex, Inc.17,693
2ADP Retirement Services9,112
3American Funds6,986
4Ascensus6,382
6 more rows

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