WTW - Willis Towers Watson Reports Strong Q4 FY2023 Earnings: Initiating A Buy

2024-02-12 03:32:55 ET

Summary

• Willis Towers Watson reported strong Q4 2023 results, which beat consensus estimates.
• The company's transformation plan has led to solid margin expansion and is expected to lead to further margin expansion in 2024.
• WTW has solid growth prospects that are in line with the broader market, but the stock trades at a discount.
• WTW has similar growth prospects to peers but is currently trading at a moderate discount.
• I rate WTW a Buy.

Willis Towers Watson ( WTW ) reported Q4 2023 results on February 6, 2023 which beat consensus estimates. The company also issued strong guidance for FY 2024. WTW shares moved higher following the release and are now, as of this writing, up ~8% from where they were prior to the release.

Despite this move higher, I believe the stock remains attractive. WTW trades at a substantial discount to the broader market, despite having growth prospects which are inline or better than the broader market. I also view the company as having less cyclical risk than the broader market. Additionally, WTW trades at a discount to peers despite having similar or better growth prospects....

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