(WW) – Watson Wyatt Worldwide – solid ROE of 17%, far above industry average of 10%

Watson Wyatt Worldwide, Inc. (WW), which recently acquired Argentine human-resources and financial-services firm Marcu & Asociados, continues to offer a solid ROE of 17%. With the industry average ROE coming in lower at 10%, WW’s ROE is just one attribute that makes it an attractive Growth and Income pick. Watson Wyatt is slated to report fiscal fourth-quarter results on August12.

Company Description

Watson Wyatt Worldwide, Inc. is a global consulting firm. Its services include managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. Watson Wyatt has 7,000 associates in 32 countries

Signs of Growth

The company recently acquired Argentine human-resources and financial-services firm Marcu & Asociados, a top HR and financial services consulting firm in Argentina.

“This acquisition positions Watson Wyatt as the clear leader in Argentina in providing human resources and actuarial consulting services to multinational and local companies,” said Peter Mills, Watson Wyatt’s Latin America region manager.

Shares of Watson Wyatt received a boost to the $54.00 level on the acquisition news and are trading near that level now despite a market that has been selling of since then.

The company continues to offer a solid ROE of 17%. With the industry average ROE coming in lower at 10%, WW’s ROE is just one attribute that makes it an attractive Growth and Income pick. Its net margin of 8.6%, versus the industry average of 1.5%, is another growth feature. The company’s earnings per share are projected to grow by 15% over the next 3 – 5 years, which matches the industry average.

Competitive Income

In early June, Watson Wyatt declared a regular quarterly cash dividend of $0.075 per common share. The dividend was paid out on July 15, 2008. The company’s dividend yield of 0.6% is ahead of the industry average since it is rare for other companies within WW’s industry group to pay dividends.

Increased Forecasts

Wall Street has the company’s fiscal fourth-quarter earnings estimates pegged at 80 cents per share, compared to the projections of two months ago of 78 cents. Fiscal year expectations for both the 2008 and 2009 years have also increased over the past two months

Watson Wyatt is slated to report fiscal fourth-quarter results on August 12, 2008.

Content Courtesy: Zacks Investment Research

#1 Ranked Stocks Highlight Archive
To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

| Blog Home| VitalStocks Home
View original at: VitalStocks Blog

Comments

Powered by Facebook Comments


Similar Posts: | Management Services | Services

RSS feeds: WW | Management Services | Services |

Other Posts by | RSS Feed for this author