WTW Stock Analysis — Willis Towers Watson
Sector: Financials
AI Verdict
WTW trades at 12.4x next year's earnings for nearly 40% expected EPS growth, which is cheap for the growth on offer if its client retention moat holds, but the overbought RSI means near-term downside risk is real.
Competitive Moat
Willis Towers Watson provides risk management, insurance brokerage, and advisory services, benefiting from entrenched client relationships and regulatory complexity that make switching costly for large corporate customers. Its global scale and integrated service platform create cross-selling opportunities and client stickiness that smaller competitors struggle to match.
Summary
WTW's forward P/E of 12.4x and expected 39.5% EPS growth make it a rare value play in the insurance brokerage space.
Where It Stands
Despite a 1-year return of -6.68% and an RSI of 71.2 signaling overbought territory, WTW trades at just 12.4x next year's earnings—well below the financials sector median of 14x.
Key Metrics
- RSI: 71.2 — Overbought
- Trailing P/E: 17.3x
- Forward P/E: 12.4x
- PEG Ratio: 0.44
- Earnings Growth: +0.4%
- Revenue Growth: +0.0%
- Market Cap: $19.5B
- Dividend Yield: 0.01%
- 1-Year Return: -6.68%
- 52-Week High: $352.79
- 52-Week Low: $240.61
Analyst Consensus
20 Buy · 8 Hold · 0 Sell (28 analysts)
Bull Case
With analysts forecasting 39.5% EPS growth and a forward P/E of 12.4x, you're paying a low price for substantial earnings acceleration.
Bear Case
An RSI of 71.2 means the stock is overbought, so a pullback to neutral RSI could erase recent gains and bring the P/E back in line with sector norms.
Catalyst to Watch
Watch for upcoming earnings guidance—confirmation of the 39.5% EPS growth outlook would reinforce the low forward P/E story.