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Factors That Make Marsh & McLennan (MMC) an Attractive Bet Now
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Marsh & McLennan Companies, Inc. (MMC - Free Report) gains from prudent rate increases, an impressive acquisition story and a strong financial position.
Top Zacks Rank & Upbeat Price Performance
Marsh & McLennan currently carries a Zacks Rank #2 (Buy).
The stock has gained 22.1% in the past year compared with the industry’s 19.6% growth. The Zacks Finance sector and the S&P 500 composite have risen 7.8% and 15.1%, respectively, in the same time frame.
Image Source: Zacks Investment Research
Robust Prospects
The Zacks Consensus Estimate for Marsh & McLennan’s 2023 earnings is pegged at $7.71 per share, indicating growth of 12.6% from the prior-year reported figure. The consensus mark for revenues stands at $22.4 billion, implying a rise of 7.8% from the year-ago reported number.
The consensus mark for 2024 earnings is pegged at $8.43 per share, suggesting an improvement of 9.4% from the 2023 estimate. The same for revenues stands at $23.6 billion, hinting at a 5.5% increase from the 2023 estimate.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2023 earnings has been revised upward 0.4% in the past 60 days.
Impressive Earnings Surprise History
MMC’s bottom line outpaced estimates in each of the trailing four quarters, the average surprise being 3.44%.
Solid Return on Equity
The return on equity for Marsh & McLennan is currently 33.7%, which is higher than the industry’s average of 31.9%. The figure substantiates the company’s efficiency in utilizing shareholders’ funds.
Key Business Tailwinds
Revenues of Marsh & McLennan benefit on the back of insurance rate increases coupled with solid contributions from its Risk and Insurance Services and, Consulting segments. Management anticipates to generate high-single-digit underlying revenue growth in 2023.
A solid Marsh business, led by strong international operations, drives the Risk and Insurance Services segment. Meanwhile, the Consulting unit benefits on the back of improved underlying growth in Wealth, Career and Health.
MMC pursues an active inorganic growth strategy throughout the year. Acquisitions form one of its core growth strategies, which in turn, solidify its capabilities, expand services offerings and enable the company to enter new geographies as well as solidify its foothold across existing markets.
This August, MMC’s Marsh business inked a deal to purchase the Australia-based specialist insurance broker Honan Insurance Group Pty Ltd. When it comes to buyouts, Marsh McLennan Agency (MMA), a division of the Marsh business, requires a special mention. Since 2009, MMA boasts an impressive acquisition history of purchasing more than 100 agencies.
A solid financial position is of immense importance for enabling uninterrupted business investments. That’s exactly the case with Marsh & McLennan, which is substantiated by sound cash reserves and adequate cash-generating abilities. A commendable financial stand also enables it to pursue a tactical capital management strategy via share buybacks and dividend payments. MMC has been hiking dividends for 14 straight years.
Erie Indemnity’s earnings surpassed the Zacks Consensus Estimate in two of the last four quarters and missed the mark twice, the average beat being 2.05%. The consensus estimate for ERIE's 2023 earnings suggests 32.9% improvement, while the same for revenues indicates growth of 12.5% from the respective year-ago reported figures.
The consensus estimate for ERIE’s 2023 earnings has moved 5.4% north in the past 60 days. Shares of Erie Indemnity have gained 31% in the past year.
AXIS Capital’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, the average surprise being 9.75%. The consensus estimate for AXS’s 2023 earnings indicates a surge of 44.8% from the year-ago reported figure. The same for revenues indicates growth of 7.9% from the year-ago reported figure.
The consensus estimate for AXS’s 2023 earnings has moved 2.8% north in the past 30 days. Shares of AXIS Capital have gained 4.2% in the past year.
Arch Capital’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 26.83%. The consensus estimate for ACGL’s 2023 earnings suggests 38.2% improvement, while the same for revenues indicates growth of 30.6% from the respective year-ago reported figures.
The Zacks Consensus Estimate for ACGL’s 2023 earnings has moved 2.3% north in the past 30 days. Shares of Arch Capital have surged 69.2% in the past year.
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Factors That Make Marsh & McLennan (MMC) an Attractive Bet Now
Marsh & McLennan Companies, Inc. (MMC - Free Report) gains from prudent rate increases, an impressive acquisition story and a strong financial position.
Top Zacks Rank & Upbeat Price Performance
Marsh & McLennan currently carries a Zacks Rank #2 (Buy).
The stock has gained 22.1% in the past year compared with the industry’s 19.6% growth. The Zacks Finance sector and the S&P 500 composite have risen 7.8% and 15.1%, respectively, in the same time frame.
Image Source: Zacks Investment Research
Robust Prospects
The Zacks Consensus Estimate for Marsh & McLennan’s 2023 earnings is pegged at $7.71 per share, indicating growth of 12.6% from the prior-year reported figure. The consensus mark for revenues stands at $22.4 billion, implying a rise of 7.8% from the year-ago reported number.
The consensus mark for 2024 earnings is pegged at $8.43 per share, suggesting an improvement of 9.4% from the 2023 estimate. The same for revenues stands at $23.6 billion, hinting at a 5.5% increase from the 2023 estimate.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2023 earnings has been revised upward 0.4% in the past 60 days.
Impressive Earnings Surprise History
MMC’s bottom line outpaced estimates in each of the trailing four quarters, the average surprise being 3.44%.
Solid Return on Equity
The return on equity for Marsh & McLennan is currently 33.7%, which is higher than the industry’s average of 31.9%. The figure substantiates the company’s efficiency in utilizing shareholders’ funds.
Key Business Tailwinds
Revenues of Marsh & McLennan benefit on the back of insurance rate increases coupled with solid contributions from its Risk and Insurance Services and, Consulting segments. Management anticipates to generate high-single-digit underlying revenue growth in 2023.
A solid Marsh business, led by strong international operations, drives the Risk and Insurance Services segment. Meanwhile, the Consulting unit benefits on the back of improved underlying growth in Wealth, Career and Health.
MMC pursues an active inorganic growth strategy throughout the year. Acquisitions form one of its core growth strategies, which in turn, solidify its capabilities, expand services offerings and enable the company to enter new geographies as well as solidify its foothold across existing markets.
This August, MMC’s Marsh business inked a deal to purchase the Australia-based specialist insurance broker Honan Insurance Group Pty Ltd. When it comes to buyouts, Marsh McLennan Agency (MMA), a division of the Marsh business, requires a special mention. Since 2009, MMA boasts an impressive acquisition history of purchasing more than 100 agencies.
A solid financial position is of immense importance for enabling uninterrupted business investments. That’s exactly the case with Marsh & McLennan, which is substantiated by sound cash reserves and adequate cash-generating abilities. A commendable financial stand also enables it to pursue a tactical capital management strategy via share buybacks and dividend payments. MMC has been hiking dividends for 14 straight years.
Other Stocks to Consider
Some other top-ranked stocks in the insurance space are Erie Indemnity Company (ERIE - Free Report) , AXIS Capital Holdings Limited (AXS - Free Report) and Arch Capital Group Ltd. (ACGL - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Erie Indemnity’s earnings surpassed the Zacks Consensus Estimate in two of the last four quarters and missed the mark twice, the average beat being 2.05%. The consensus estimate for ERIE's 2023 earnings suggests 32.9% improvement, while the same for revenues indicates growth of 12.5% from the respective year-ago reported figures.
The consensus estimate for ERIE’s 2023 earnings has moved 5.4% north in the past 60 days. Shares of Erie Indemnity have gained 31% in the past year.
AXIS Capital’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, the average surprise being 9.75%. The consensus estimate for AXS’s 2023 earnings indicates a surge of 44.8% from the year-ago reported figure. The same for revenues indicates growth of 7.9% from the year-ago reported figure.
The consensus estimate for AXS’s 2023 earnings has moved 2.8% north in the past 30 days. Shares of AXIS Capital have gained 4.2% in the past year.
Arch Capital’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 26.83%. The consensus estimate for ACGL’s 2023 earnings suggests 38.2% improvement, while the same for revenues indicates growth of 30.6% from the respective year-ago reported figures.
The Zacks Consensus Estimate for ACGL’s 2023 earnings has moved 2.3% north in the past 30 days. Shares of Arch Capital have surged 69.2% in the past year.