5 Best Insurance Brokerage Stocks To Buy Now

3. Willis Towers Watson Public Limited Company (NASDAQ:WTW)

Number of Hedge Fund Holders: 36

Willis Towers Watson Public Limited Company (NASDAQ:WTW) provides advisory, broking, and solutions services. The company operates in two main segments – Health, Wealth and Career and Risk & Broking. On April 27, Willis Towers Watson Public Limited Company (NASDAQ:WTW) reported a Q1 non-GAAP EPS of $2.84, beating Wall Street estimates by $0.04. Revenue increased 4% to $2.2 billion with organic growth of 8%, however, it missed Street consensus by $20 million. It is one of the best insurance brokerage stocks to invest in. 

On May 1, Baird analyst Mark Marcon maintained an Outperform rating on Willis Towers Watson Public Limited Company (NASDAQ:WTW) but lowered the firm’s price target on the shares to $257 from $259. The analyst acknowledged that some targets are taking longer to achieve than initially anticipated, but he still likes the company. He noted that organic revenue growth, margins, and free cash flow are gradually improving, the valuation is reasonable, and the majority of the business is not sensitive to economic cycles. Additionally, the company continues to return cash to shareholders.

According to Insider Monkey’s fourth quarter database, 36 hedge funds were bullish on Willis Towers Watson Public Limited Company (NASDAQ:WTW), compared to 42 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest stakeholder of the company, with approximately 5 million shares worth $1.20 billion. 

Here is what Artisan Partners specifically said about Willis Towers Watson Public Limited Company (NASDAQ:WTW) in its Q3 2022 investor letter:

“Willis Towers Watson Public Limited Company (NASDAQ:WTW) shares rose 2% in the quarter. This modest increase made it one of our best performers during a difficult quarter. Absent significant news, the business continues to benefit from a hard insurance market. Results are still lagging peers, but the management team seems to be making progress in closing the gap. In the meantime, the company is returning significant amounts of capital to shareholders. Over the past eight months, it has repurchased $4 billion in stock and reduced the share count by 15%. And there is more on the way. This is a good business in a fantastic industry trading at 12X normalized earnings . We believe it is worth much more.”