Compelling Reasons to Hold on to Marsh & McLennan Stock

Core Viewpoint - Marsh & McLennan Companies, Inc. (MMC) is experiencing sustained revenue growth, supported by a strong acquisition strategy, rate hikes, and a solid financial position [1]. Financial Performance - MMC currently holds a Zacks Rank 3 (Hold) and has seen its stock gain 8.4% year to date, outperforming the industry growth of 7.3% [2]. - The Zacks Consensus Estimate for MMC's 2025 earnings is $9.57 per share, reflecting an 8.8$26.9 billion, indicating a 9.9% growth [4]. - For 2026, the earnings estimate is $10.45 per share, showing a 9.1$28.4 billion, a 5.5% increase from the previous year [5]. - MMC has a strong earnings surprise history, exceeding estimates in the last four quarters with an average surprise of 3.13% [6]. Return on Equity - The return on equity for MMC is currently 32.6%, surpassing the industry average of 29.5%, indicating effective utilization of shareholders' funds [7]. Business Segments and Growth Drivers - Revenue growth is driven by strong performance in both the Risk and Insurance Services and Consulting divisions, with management expecting mid-single-digit growth for 2025 [8]. - The Risk and Insurance Services segment is benefiting from new business generation, rising renewal rates, and favorable pricing trends, completing 10 acquisitions in 2024 [9]. - The Consulting division is thriving due to sustained demand for health, wealth, and career advisory services, supported by seven strategic acquisitions in the same period [10]. Acquisition Strategy - MMC is committed to an active acquisition strategy, investing $8.5 billion in acquisitions in 2024, including the notable acquisition of Arthur Hall Insurance [11]. Financial Position - The company maintains a solid financial position with healthy cash reserves and strong cash flow, allowing for strategic investments and consistent shareholder returns, with a current dividend yield of 1.4%, above the industry average of 1% [12].