Marsh & McLennan Companies Inc. (MMC): Today's Featured Insurance Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Marsh & McLennan Companies ( MMC) pushed the Insurance industry higher today making it today's featured insurance winner. The industry as a whole closed the day up 0.6%. By the end of trading, Marsh & McLennan Companies rose 34 cents (1%) to $34.27 on average volume. Throughout the day, 2.5 million shares of Marsh & McLennan Companies exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in a price between $34.05-$34.49 after having opened the day at $34.05 as compared to the previous trading day's close of $33.93. Other companies within the Insurance industry that increased today were: MGIC Investment Corporation ( MTG), up 18.3%, Fortegra Financial ( FRF), up 4.5%, ING Groep N.V ( ING), up 2.8%, and Endurance Specialty Holdings ( ENH), up 2.7%.
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Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions in the areas of risk, strategy, and human capital. It operates in two segments, Risk and Insurance Services, and Consulting. Marsh & McLennan Companies has a market cap of $18.4 billion and is part of the financial sector. The company has a P/E ratio of 17.8, equal to the average insurance industry P/E ratio and equal to the S&P 500 P/E ratio of 17.7. Shares are up 7.3% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Marsh & McLennan Companies a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Marsh & McLennan Companies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Life Partners Holdings ( LPHI), down 5.2%, Baldwin & Lyons ( BWINA), down 3.6%, Phoenix Companies ( PNX), down 3%, and Kingstone Companies ( KINS), down 2.8%, were all laggards within the insurance industry with Genworth Financial ( GNW) being today's insurance industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF ( KIE) while those bearish on the insurance industry could consider Proshares Short Financials ( SEF).

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