Is Marsh & McLennan Stock Outperforming the S&P 500?

With a market cap of $116.3 billion, Marsh & McLennan Companies, Inc. (MMC) is a global professional services firm specializing in risk, strategy, and people solutions. The New York-based company operates through four key subsidiaries: Marsh (insurance brokerage), Guy Carpenter (reinsurance), Mercer (consulting), and Oliver Wyman (management consulting).

Companies worth $10 billion or more are generally described as “large-cap” stocks and Marsh & McLennan fits right into that category with its market cap exceeding this threshold. With a presence in over 130 countries, MMC benefits from strong geographic diversification and financial stability. It also invests heavily in innovation, using data analytics and AI to enhance client solutions, while its client-centric approach ensures high retention and long-term partnerships.

MMC is currently trading 1.7% below its 52-week high of $241.84, reached recently on March 3. Shares of MMC have gained 4.2% over the past three months, surpassing the broader S&P 500 Index ($SPX), which declined 3.8% during the same period.

However, MMC has gained 4.1% over the past six months, underperforming SPX’s 6.2% returns. However, shares of MMC have climbed 17.8% over the past 52 weeks, surpassing SPX’s 15% gains over the same time frame.

To confirm its bullish trend, MMC has been consistently trading above its 50-day and 200-day moving average since early February.

Marsh & McLennan shares edged up marginally on Jan. 30 following the release of its Q4 results. Its adjusted EPS of $1.87 exceeded consensus estimates and marked an 11% year-over-year increase. Additionally, consolidated revenue climbed 9.4% year-over-year to $6.1 billion, surpassing expectations. The growth was fueled by solid performance in the Marsh unit, particularly across the U.S./Canada and international markets, alongside higher consulting profits from Oliver Wyman. 

In the competitive arena of insurance brokers, Aon plc (AON), MMC’s top rival, is in the lead, gaining 28.2% over the past 52 weeks and 15.9% over the past six months. 

Wall Street remains cautious about its prospects. The stock has a consensus rating of “Hold” from the 22 analysts covering it, and the stock currently trades above its mean price target of $236.65.