Marsh & McLennan Companies, Inc.’s MMC business, Oliver Wyman, recently announced that it is combining its aviation brand CAVOK and SeaTec Consulting Inc. into Oliver Wyman Vector. SeaTec Consulting caters to aerospace, defense, aviation and transportation industries. The move is expected to boost Oliver Wyman’s position in the aviation space.
Combining these two businesses will result in more significant synergies and deliver excellent solutions to clients in the transportation industry. Oliver Wyman Vector is set to offer its technical prowess across services like engineering, technical consulting and digital expertise in aviation, defense, aerospace and rail industries. The new name and visual identity will be available on the company’s website, marketing materials and social media platforms.
Oliver Wyman contributed 36% to the total consulting revenues of MMC in 2023. It reported underlying revenue growth of 8% in 2023. Oliver Wyman is a faster-growing business for MMC. It expects this business to register growth in mid-to-high-single digits over the long term. The company often pursues high-quality acquisitions to expand inorganically. It expects to spend approximately $4.5 billion of capital on acquisitions, share repurchases and dividends.
Per Oliver Wyman’s Global Fleet and MRO Market Forecast 2024-2034 report, the aviation market is expected to grow 28% to 36,400 aircraft by 2034. However, shortage of labor, supply-chain constraints and new environmental rules are expected to drive the industry to pursue innovative solutions to combat these issues. Oliver Wyman’s COVAK business is expected to benefit from this trend. The company expects to achieve a seamless transition as it launches its new name.
Zacks Rank & Price Performance
Marsh & McLennan currently has a Zacks Rank #4 (Sell).
Shares of Marsh & McLennan have soared 21.5% in the past year compared with the industry’s 16.4% rise.
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Stocks to Consider
Some better-ranked stocks in the broader Finance space are Coinbase Global, Inc. COIN, Burford Capital Limited BUR and Brown & Brown, Inc. BRO. While Coinbase Global and Burford Capital sport a Zacks Rank #1 (Strong Buy) at present, Brown & Brown carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Coinbase’s current-year earnings implies a 462.2% year-over-year surge. It has witnessed five upward estimate revisions against none in the opposite direction during the past month. COIN beat earnings estimates in each of the past four quarters, with an average surprise of 377.6%.
The Zacks Consensus Estimate for Burford Capital’s 2024 full-year earnings is pegged at $2.04 per share, which increased 2 cents in the past month. It beat earnings estimates twice in the past four quarters and missed on the other occasions, with an average surprise of 113.4%. The consensus mark for BUR’s revenues in full-year 2024 is pegged at $882 million.
The Zacks Consensus Estimate for Brown & Brown’s current-year earnings is pegged at $3.29 per share, which indicates 17.1% year-over-year growth. BRO beat earnings estimates in each of the past four quarters, with an average surprise of 11.2%. Also, the consensus mark for BRO’s 2024 revenues suggests 6.6% year-over-year growth.
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