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Shares of Willis Towers Watson Public Limited Company WTW have gained 24.7% in the past year, outperforming the Finance sector and the Zacks S&P 500 composite’s growth of 17.4% and 9.3%, respectively. Shares of WTW have underperformed the industry’s growth of 26.5% in the same time frame.
The insurer has a market capitalization of $30.99 billion. The average volume of shares traded in the last three months was 0.6 million.
WTW shares are trading below the 200-day moving average, indicating a bullish trend.
WTW vs Industry, Sector & S&P 500 in 1 Year
Image Source: Zacks Investment Research
WTW Shares are Affordable
WTW shares are trading at a price to forward 12-months earnings of 17.75X, lower than the industry average of 22.63X. Its pricing, at a discount to the industry average, gives a better entry point to investors. Shares of other insurers like Brown & Brown, Inc. BRO, Marsh & McLennan Companies, Inc. MMC and Arthur J. Gallagher & Co. AJG are trading at a multiple higher than the industry average.
Image Source: Zacks Investment Research
WTW’s Growth Projection Encourages
The Zacks Consensus Estimate for Willis Towers’s 2026 earnings per share and revenues indicates an increase of 13.8% and 5.3%, respectively, from the corresponding 2025 estimates.
The insurer has a solid surprise history. It surpassed earnings estimates in three of the last four quarters and missed in one, the average beat being 5.12%.
Factors Impacting WTW
Willis Towers’ growth strategy encompasses a focus on improving operating margins, increasing free cash flow conversion and driving sustainable revenue growth. Focus on core opportunities with the highest growth and return, which include gaining market share in Risk and Broking and Individual Marketplace, should spur long-term growth and return more value to shareholders.
Well-performing Health, Wealth & Career and Risk & Broking segments, driven by solid customer retention levels, growing new business and geographic diversification, continue to fuel the top line. Most of the company's operating regions experienced revenue growth for 15 straight quarters.
Strategic acquisitions have expanded its geographical footprint in the last few years in countries like Italy, Canada, the United Kingdom and France, as well as ramped up its product portfolio.
Willis Towers has been improving its liquidity while maintaining a solid balance sheet. A solid balance sheet and steady cash flow are expected to help the company engage in capital deployment for buybacks, dividend payouts, debt repayments, acquisitions and investments that drive and support growth.