Towers Watson & Co. (TW) saw a big move last session, as the company’s shares fell by almost 9% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This breaks the recent trend of the company, as the stock is now trading below the volatile price range of $134.90 to $141.26 in the past one-month time frame.
On Jun 30, 2015, the company announced a merger with Willis Group, which will create a professional services, risk management and insurance brokerage firm with combined annual revenue of approximately $8.2 billion for 2014. Also, the combined firm will employ around 39,000 individuals in over 120 countries.
The consulting firm has seen a flat record when it comes to current year estimate revisions over the past few weeks (0 increases, 0 decreases), and the consensus for earnings hasn’t been in a trend either. This recent price action is discouraging, so make sure to keep a close watch on this firm in the near future, and especially on earnings estimates following the recent slump.
TW currently has a Zacks Rank #3 (Hold) while its Earnings ESP is negative.
A better-ranked stock in the same sector is Accenture plc (ACN), holding a Zacks Rank #2 (Buy).
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