Towers Watson (TW)
Price: $63.18
Industry: Business Service Chaikin Power Gauge Report | Generated: Wed Jul 27 11:30 EDT 2011 TW Towers Watson
$63.18
Power Gauge Rating
TW - Neutral TM
The Chaikin Power Gauge Rating for TW is neutral with attractive financial metrics, very strong earnings performance, bullish price/volume activity and very positive expert opinions.
Financial Metrics
TW's earnings performance is very strong as a result of high earnings growth over the past 3-5 years.
Earnings Performance
TW's financial metrics are very good due to a high price to book value ratio.
Price/Volume Activity
Despite these bullish factors, Chaikin Power Tools has identified a negative trend resulting in a neutral rating.
Expert Opinions
News Sentiment Rating
Neutral TW Towers Watson
July 21, 2011
TM
Chaikin Sentiment Gauge for TW is neutral. Stories concerning TW have a balanced or neutral sentiment.
News Sentiment :Neutral
Power Trend - 5 Year Chart
The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.
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High Potential
Neutral
Low Potential
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Financials & Earnings
Financial Metrics
Financial Metrics Rating
Bullish
LT Debt/Equity Ratio
TW's financial metrics are very good. The company does not hold much long term debt and generates high free cash flow relative to market capitalization.
Price to Book Value
The rank is based on a low long term debt to equity ratio and relatively high cash flow.
Return on Equity
Price to Sales Ratio
Business Value
Assets and Liabilities
Valuation
Returns
Ratio
TTM
Ratio
TTM
Ratio
Current Ratio
1.45
Price/Book
1.36
Return on Invest
12.0%
LT Debt/Equity
0.00
Price/Sales
1.96
Return on Equity
12.0%
Earnings Performance
TTM
Earnings Performance Rating
Very Bullish
Earnings Growth
TW's earnings performance has been very strong. The company has a history of strong earnings growth and has outperformed analysts' earnings estimates.
Earnings Surprise
The rank is based on high earnings growth over the past 3-5 years, better than expected earnings in recent quarters, a relatively low projected P/E ratio and consistent earnings over the past 5 years.
Earnings Trend
Projected P/E Ratio
Earnings Consistency
5 Year Revenue and Earnings Growth
Revenue(M) Rev % Growth EPS EPS % Growth
EPS Estimates
06/06
06/07
06/08
06/09
06/10
1,271.81
1,486.52
1,760.06
1,676.03
2,387.83
-
16.88%
18.40%
-4.77%
42.47%
$2.11
$2.74
$3.65
$3.43
$2.04
-
29.86%
33.21%
-6.03%
-40.52%
EPS Surprise
Factor
Actual EPS Prev
EST EPS Current
Change
$0.45
$0.96
+0.51
Quarterly EPS Yearly EPS Factor
$2.04
$4.64
+2.60
Actual EPS Growth
Est EPS Growth
Change
18.24%
12.00%
-6.24
3-5 year EPS
EPS Quarterly Results Estimate
Actual
Difference
% Difference
FY
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Total
Latest Qtr
$0.94
$1.26
$0.32
1 Qtr Ago
$0.84
$0.91
$0.07
34.04
06/08
$0.82
$0.93
$0.95
$0.73
$3.43
8.33
06/09
$0.70
$0.57
$0.12
$0.77
$2.16
2 Qtr Ago
$0.90
$0.71
3 Qtr Ago
$0.80
$0.69
$-0.19
-21.11
06/10
$0.45
$0.65
$0.94
-
$2.04
$-0.11
-13.75
Fiscal Year End Month is June.
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Price Trend & Expert Opinions Price/Volume Activity
Price/Volume Activity Rating
Bullish
Relative Strength vs Market
Chaikin Money Flow
Price and volume activity for TW is bullish. TW is experiencing sustained buying and has outperformed the S&P 500 over 26 weeks.
Price Trend
The rank for TW is based on its price strength versus the market, positive Chaikin money flow, a positive Chaikin price trend and a negative Chaikin price trend ROC.
Price Trend ROC
Volume Trend
Relative Strength vs S&P500 Index
Chaikin Money Flow
Chart shows whether TW is performing better or worse than the market.
Chaikin Money Flow analyzes supply and demand for a company's stock.
Price Activity
Price Activity
Factor
Value
Factor
52 Week High
66.38
52 Week Low
41.13
% Change YTD Rel S&P 500
13.24%
Expert Opinions
Volume Activity Value
Factor
Value
% Change Price - 4 Weeks
0.21%
Average Volume 20 Days
275,667
% Change Price - 24 Weeks
11.16%
Average Volume 90 Days
327,438
% Change Price - 4 Wks Rel to S&P
-4.57%
Chaikin Money Flow Persistency
% Change Price - 24 Wks Rel to S&P
9.40%
83%
Expert Opinions
Very Bullish
Earnings Estimate Revisions
Expert opinions about TW are very positive. Analysts are raising their EPS estimates for TW and shorting of TW is low.
Short Interest
Insider Activity
The rank for TW is based on analysts revising earnings estimates upward, a low short interest ratio, insiders not purchasing significant amounts of stock, optimistic analyst opinions and price strength of the stock versus the Business Service industry group.
Analyst Opinions
Relative Strength vs Industry
Earnings Estimate Revisions Current Current Qtr Next Qtr
0.90 0.96 Current
Current FY
3.77
Analyst Recommendations
7 Days Ago % Change 0.90 0.96
0.00% 0.00%
30 Days Ago % Change 3.77
0.00
Factor Mean this Week Mean Last Week
EPS Estimates Revision Summary Value
Buy 0.00
Mean 5 Weeks Ago
Buy
Last 4 Weeks
Down
Up
Down
Curr Qtr
0
0
0
0
Curr Yr
0
0
0
0
Next Qtr
0
0
0
0
Next Yr
0
0
0
0
Buy
Change
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Last Week Up
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The Company & Its Competitors
News Headlines for TW
TW's Competitors in Business Service Company
Power Gauge
Historic EPS growth
Projected EPS growth
Profit Margin
PEG
PE
Revenue(M)
TW
18.24%
12.00%
6.61%
1.14
17.69
-
ACN
6.70%
13.25%
8.12%
1.37
19.47
23,094
CBZ
5.61%
12.50%
3.61%
1.00
12.63
733
FCN
22.03%
16.25%
5.63%
0.98
17.80
1,401
NCI
4.68%
13.50%
3.67%
1.14
17.55
704
STN
23.80%
12.00%
7.33%
1.10
14.05
1,190
5.82%
20.67%
8.02%
1.28
32.64
1,288
-19.80%
8.50%
-4.62%
1.79
13.24
1,623
IT CLGX
Towers Watson Launches Executive Compensation Blog - Jul 18, 2011 Towers Watson Introduces Updated Version of MoSes Financial Modeling Solutions for U.S. Life Insurers - May 11, 2011 Towers Watson Launches New iPad Application - Mar 23, 2011 Managers Critical to Successful M&A, but Underleveraged, Towers Watson Study Finds Feb 8, 2011 Towers Watson Completes Acquisition of EMB Feb 1, 2011
Company Details
Company Profile
TOWERS WATSON 901 N. GLEBE ROAD ARLINGTON, VA 22203 USA Phone: (703) 258-8000 Fax: 703-258-8585 Website: http://http://www.watsonwyatt.com/ Full Time Employees: 7,700 Sector: Business Services
Towers Watson & Co. is a global professional services company that helps organizations improve performance through effective people, risk and financial management. It offers solutions in the areas of employee benefits, talent management, rewards, and risk and capital management. The Company's benefits solutions cover health and group benefits, mergers and acquisitions, retirement, and technology and administration. Its risk and financial services solutions include financial modeling software, investment, reinsurance, insurance consulting, mergers and acquisitions, and risk management. Its talent and rewards solutions cover communication and change, employee surveys, HR function effectiveness, rewards, talent management, data services, executive compensation, mergers and acquisitions, and sales effectiveness and compensation. Towers Watson & Co. was formerly known as Watson Wyatt Worldwide, Inc. and is headquartered in New York.
Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.
LM 2.3 DS 3.0 LS 2.1
Data Provided by ZACKS Investment Research, Inc., www.zacks.com
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