Is Keeping Willis Towers (WTW) in Your Portfolio a Good Idea?
Investors are always on the lookout for promising stocks that can provide a good return on investment. One such stock that has been making waves recently is Willis Towers Watson Public Limited Company (WTW). The company has been benefiting from growing healthcare premiums, improved client retention, higher software sales, and a solid balance sheet. But the question remains, is it a good idea to keep Willis Towers in your portfolio?
Growth Projections for Willis Towers
The Zacks Consensus Estimate for 2023 earnings per share is pegged at $15.23, indicating year-over-year increases of 12.6%. This is a promising figure for investors, as it suggests that the company is on a growth trajectory. Furthermore, the expected long-term earnings growth is pegged at 16%, which is significantly better than the industry average of 11.3%. This indicates that Willis Towers is not only performing well currently but is also expected to outperform its peers in the future.
Earnings Surprise History
Willis Towers has a decent earnings surprise history. It beat estimates in each of the last four quarters, the average being 3.80%. This shows that the company has been consistently performing better than what the market expects, which is a positive sign for investors. Companies that regularly beat earnings estimates are often seen as less risky investments as they show a pattern of outperforming market expectations.
What Does This Mean for Investors?
From an investor’s perspective, Willis Towers seems to be a promising stock. The company’s strong growth projections, coupled with its history of beating earnings estimates, make it an attractive investment. Furthermore, the company’s strong performance in areas such as healthcare premiums, client retention, and software sales indicate that it has a solid business model that is capable of generating consistent profits.
However, like any investment, it’s important to consider the potential risks. While Willis Towers has shown strong performance in the past, there’s no guarantee that this will continue in the future. Therefore, investors should carefully consider their risk tolerance and investment goals before deciding to keep Willis Towers in their portfolio.
Conclusion
In conclusion, Willis Towers presents a compelling investment opportunity. The company’s strong growth projections and history of beating earnings estimates suggest that it could provide a good return on investment. However, as with any investment, it’s important to carefully consider the potential risks and align the investment with your individual financial goals. Therefore, while Willis Towers seems to be a promising stock, whether or not to keep it in your portfolio depends on your individual investment strategy and risk tolerance.