/insurance_industry_istock_58219068-ed10f702f14845b49234ede0935b708b.jpg)
[ad_1]
Insurance brokers braved a sea of red in financial stocks on Thursday after better-than-expected quarterly earnings from Marsh & McLennan Companies, Inc. (MMC) and Willis Towers Watson Public Limited Company (WLTW) eased mounting concerns. on the impact the coronavirus pandemic will have on the industry.
Let’s take a look at each company in more detail, as well as Aon Plc (AON), which reported first-quarter earnings ahead of today’s opening bell. We will also analyze the charts to identify potential business opportunities.
Marsh & McLennan Companies, Inc. (MMC)
Marsh & McLennan provides advice and solutions to clients at risk, strategy and human capital. New York-based insurance giant released Q1 earnings per share (EPS) of $ 1.64 to offer a 5.1% earnings surprise and add to your chain of five consecutive results beats. Revenue for the quarter grew 5%, helped by the company’s insurance and consulting services. Independent investment research firm CFRA has upgraded Marsh & McLennan shares from “hold” to “buy” after the company’s encouraging results. At a listing of $ 97.33, with a market capitalization of $ 49.06 billion and issuing a dividend yield of 1.87%, the stock has fallen nearly 12% so far this year through May 1, 2020.
Marsh & McLennan shares have recently consolidated into a pennant pattern near a horizontal line that has spanned the past 12 months. A gain-driven breakout at a large volume in yesterday’s session caused stocks to close above the pennant’s main trend line and 50-day simple moving average (SMA), a move that can take buyers out. of carpentry in the coming days. Those buying at current levels should set a profit target close to the crucial top resistance at $ 110 but break out below the pattern low at $ 91.80.
Willis Towers Watson Corporation (WLTW)
Willis Towers Watson offers insurance advisory and brokerage services, operating through the Willis brand for risk and insurance solutions and the Towers Watson brand for consulting services. The $ 22.95 billion insurer released mixed first-quarter financial results, beating the results Estimated at 6.4%, but revenue forecasts are slightly lacking due to higher costs. Although the stock has fallen 11.71% year-to-date, it has exceeded the industry average over the same period by approximately 5% as of May 1, 2020. Investors also receive a dividend yield of 1.55%.
Willis Towers’ post-sale rally stalled in the 200-day SMA, with the price dropping approximately 10% from April 14. Yesterday’s bullish results helped the stock stabilize in a closely watched support zone between $ 170 and $ 175 in a sign that the recent sale may have ended. Traders who go a lot here should consider climbing to $ 195 and $ 215, both key areas of air resistance. Protect capital by reducing losses if the price falls below the support zone.
Aon Plc (AON)
With a market value of nearly $ 40 billion, Aon provides advice and solutions to clients focused on risk, retirement and health. The London-based insurance broker revealed an adjusted EPS of $ 3.68, representing an 11.2% increase from the figure reported the previous year. Revenue reached $ 3.22 billion, up from $ 3.14 billion last year. The company quotes at a discount for its competitors, with a forward price-benefit ratio (forward P / E ratio) of 16.79 compared to 19.68 for the industry average of insurance brokers. As of May 1, 2020, Aon shares issue a dividend yield of 1.03% and have fallen 17.10% for the year.
The insurance giant’s stock price has made an impressive rebound in multi-year support at $ 150, but it has spent the past two weeks coming back on half of that movement. However, the pullback may be short-lived, with yesterday’s action forming a bullish drilling pattern near the intermediate support to indicate a possible upside reversal. Buyers here must place a stop-loss order below $ 165 and reserve gains at $ 195, where the price meets a confluence of resistance from horizontal price action and the 200-day SMA.
