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solzberg in Gainers & Losers,

Shares of Marsh & McLennan to continue to rise

I remain upbeat about the shares of Marsh & McLennan, a US-based multinational professional services firm. The company’s financials for the first quarter of 2016 were solid, with both top and bottom line surpassing consensus estimates. Revenues increased 3.8%, adjusted operating margin came in at 22.1%, and adjusted earnings per share climbed 1.1% to 92 cents beating analysts’ average projection by 3.4%. Marsh & McLennan has always been committed to enhance its shareholders value via dividend hikes and share buybacks. During Q1, the company bought back 3.5 mn shares for $200 mn. Besides, in May, the company approved a 9.7% hike in its quarterly dividend to 34 cents per share, which offers a healthy dividend yield of 2%.

To note, Marsh & McLennan regularly undertakes strategic acquisitions to enhance its growth profile. In April, the company acquired insurance broker Corporate Consulting Services, which will further boost its already robust employee benefits services. In March, the company bought Celedinas Insurance Group for nation-wide expansion of its private client capabilities. Earlier this year, Marsh & McLennan acquired UK-based insurance broker Jelf Group and CPSG Partners, a provider of Workday implementation services.

I believe that the recent acquisitions and well-executed restructuring initiatives will allow Marsh & McLennan to continue to deliver solid financials going forward. The company plans to post Q2 financials on July 28, and I expect it will be able to positively surprise investors again.

Shares of Marsh & McLennan are trading above their 50-day moving average as well as $65 resistance level. I expect the stock to continue growth, with medium-term target at $72.