Marsh & McLennan Stock: Is MMC Underperforming the Financial Sector?

MMC +0.41% XLF +0.72%

New York-based Marsh & McLennan Companies, Inc. (MMC) is a leading global professional-services firm and the world’s largest insurance broker, operating in more than 130 countries. Through its major brands, Marsh and Guy Carpenter in risk and insurance services, and Mercer and Oliver Wyman in consulting, MMC provides insurance broking, risk management, reinsurance solutions, human-capital advisory, and strategic consulting.

Companies worth $10 billion or more are generally described as "large-cap stocks." With a market cap of $89.9 billion, McLennan fits right into that category. With about 90,000 employees, the company continues to show steady growth driven by diversified service offerings and a strong global client base.

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Despite its notable strengths, MMC stock has plunged 26% from its all-time high of $248 touched on Apr. 4. Meanwhile, MMC has dropped 11.1% over the past three months, notably underperforming the Financial Select Sector SPDR Fund’s (XLF) marginal fall during the same time frame.

MMC stock has dropped 13.6% on a YTD basis and 21.4% over the past 52 weeks, lagging behind the XLF’s 10.4% gains in 2025 and 4% surge over the past year.

Indicating a bearish trend, MMC stock has remained mostly below its 50-day moving average since early April, with some fluctuations, and under its 200-day moving average since early June.

On Oct. 16, MMC shares closed down by 8.5% after reporting its Q3 results, with revenue rising 11% year over year to $6.4 billion, supported by 4% underlying organic growth and adjusted EPS up 11% to $1.85. The Risk & Insurance Services segment led gains with 13% revenue growth to $3.9 billion, fueled by strong results at Marsh and continued momentum in reinsurance through Guy Carpenter, while the Consulting segment grew 9% to $2.5 billion, driven by Mercer and Oliver Wyman.

Adjusted operating income increased 13% to $10 million, with margins expanding about 30 basis points, reflecting improved efficiency. The company also announced a major rebranding initiative to operate under the unified name “Marsh” starting in 2026, alongside strategic operational restructuring and $400 million in share buybacks, underscoring confidence in long-term growth and profitability.

Marsh & McLennan has notably underperformed its peer, Arthur J. Gallagher & Co.’s (AJG) 21.8% gains on a YTD basis and 21.4% uptick over the past 52 weeks.

Among the 24 analysts covering the MMC stock, the overall consensus rating is a “Moderate Buy.” Its mean price target of $213.40 suggests a 16.3% upside potential from current price levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com