Stock of the Day

December 15, 2020

Marsh & McLennan Companies (MMC)

$230.05
-$0.52 (-0.2%)
Market Cap: $113.24B

About Marsh & McLennan Companies

Marsh & McLennan Cos., Inc. is a professional services firm, which engages in offering clients advice and solutions in risk, strategy, and people. It operates through the Risk and Insurance Services, and Consulting segments. The Risk and Insurance Services segment is involved in risk management activities, as well as insurance and reinsurance broking and services. The Consulting segment offers health, wealth, and career solutions and products, and specialized management, strategic, economic, and brand consulting services. The company was founded by Henry W. Marsh and Donald R. McLennan in 1871 and is headquartered in New York, NY.

Marsh & McLennan Companies Bull Case

Here are some ways that investors could benefit from investing in Marsh & McLennan Companies, Inc.:

  • The current stock price is $228.95, which is near its 52-week high of $235.50, indicating strong market performance and investor confidence.
  • Marsh & McLennan Companies, Inc. reported earnings per share (EPS) of $1.87, exceeding the consensus estimate of $1.75, showcasing strong financial performance.
  • The company has a robust return on equity of 32.60%, which suggests effective management and profitability relative to shareholder equity.
  • Analysts have a consensus target price of $230.44, indicating potential for price appreciation based on current valuations.
  • The recent quarterly dividend of $0.815, translating to an annualized dividend yield of 1.42%, provides a steady income stream for investors.

Marsh & McLennan Companies Bear Case

Investors should be bearish about investing in Marsh & McLennan Companies, Inc. for these reasons:

  • Despite positive earnings, the company has a relatively high price-to-earnings (P/E) ratio of 27.95, which may indicate that the stock is overvalued compared to its earnings.
  • The debt-to-equity ratio of 1.44 suggests that the company has a significant amount of debt compared to its equity, which could pose risks in a rising interest rate environment.
  • With two analysts rating the stock as a sell, there is a portion of the market that is cautious about its future performance.
  • The stock has experienced a slight decline of 0.9% recently, which may indicate short-term volatility and investor uncertainty.
  • Market analysts have assigned a majority hold rating, suggesting that many investors may prefer to wait for more favorable conditions before investing.

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