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Marsh & McLennan Companies, Inc. (MMC), headquartered in New York, is a professional services company that provides advisory services and insurance solutions to clients in the areas of risk, strategy, and people worldwide. Valued at $115.1 billion by market cap, the company offers analysis, advice, and transactional capabilities.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and MMC perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the insurance brokers industry. MMC has a strong presence in insurance brokerage, risk management, reinsurance, consulting, and talent management. With a history dating back to 1871, MMC is known for its quality service and expertise, making it a trusted and reputable brand in the industry.
Despite its notable strength, MMC slipped 5.3% from its 52-week high of $248, achieved on Apr. 4. Over the past three months, MMC stock declined 1.3%, underperforming the Nasdaq Composite’s ($NASX) 2.1% gains during the same time frame.
In the longer term, shares of MMC rose 10.5% on a YTD basis, outperforming NASX’s marginal dip over the same time frame. However, MMC climbed 13.1% over the past 52 weeks, underperforming NASX’s 15% return over the last year.
To confirm the bullish trend, MMC is trading above its 50-day moving average since late January, experiencing some fluctuations. The stock has been trading above its 200-day moving average over the past year, with some fluctuations.
On Apr. 17, MMC shares closed down more than 4% after reporting its Q1 results. Its adjusted EPS of $3.06 topped Wall Street expectations of $3.02. The company’s revenue was $7.06 billion, failing to meet Wall Street forecasts of $7.07 billion.
In the competitive arena of insurance brokers, Aon plc (AON) has taken the lead over MMC, showing resilience with a 33.6% uptick over the past 52 weeks but lagged behind the stock with a 4.7% gain on a YTD basis.
Wall Street analysts are cautious on MMC’s prospects. The stock has a consensus “Hold” rating from the 19 analysts covering it, and the mean price target of $237.35 suggests a potential upside of 1.1% from current price levels.
