Here’s Why Willis Towers Watson (WTW) is Still a Great Buy

Parnassus Investments, an investment management firm that focuses on owning a concentrated portfolio of U.S. large-cap stocks, released its Parnassus Value Equity Fund second-quarter 2025 investor letter. The full letter is available for download here. For the second quarter of 2025, the fund reported a net return of 7.24%, outperforming its benchmark, the Russell 1000 Value Index, which returned 3.79% for the same period. The fund’s top 5 holdings are also listed in the letter, showing the firm’s main investment positions heading into 2025.

One of the companies mentioned in the letter is

Willis Towers Watson Public Limited Company

(NASDAQ:WTW). Willis Towers Watson Public Limited Company (NASDAQ:WTW) operates as an advisory, broking, and solutions company worldwide. Over the past month, Willis Towers Watson Public Limited Company (NASDAQ:WTW) rose by 8.82%, and its shares gained 16.65% of their value over the last 12 months. On August 15, 2025, Willis Towers Watson Public Limited Company (NASDAQ:WTW) shares closed at $330.50, with a market capitalization of $32.126 billion.

Here is what they have to say about Willis Towers Watson Public Limited Company (NASDAQ:WTW) in their investor letter:

“Willis Towers Watson Public Limited Company (NASDAQ:WTW) has underperformed peers due to past merger disruptions, but the company is now showing signs of stabilization, with organic growth and margins improving. Global scale, high client retention and strong brand reputation have contributed to the company’s competitive advantages, which were further enhanced by recent leadership changes and strategic hires. Additionally, the company is less sensitive to insurance pricing cycles due to its revenue mix that skews toward large clients and fee-based income, making the stock an attractive defensive investment.”

Here’s Why Willis Towers Watson (WLTW) is Still a Great Buy

Willis Towers Watson Public Limited Company (NASDAQ:WTW) is not included in our list of the 30 most popular stocks among hedge funds. According to our data,

57 hedge fund portfolios held positions in Willis Towers Watson Public Limited Company (NASDAQ:WTW) at the end of the first quarter of 2025, up from

48 in the previous quarter. WTW beats earnings expectations as it reported an EPS of $3.31, above expectations of $2.65. While we acknowledge the potential of WTW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.