Towers Watson (TW) Price: $63.18

Industry: Business ServiceChaikin Power Gauge Report | Generated: Wed Jul 27 11:30 EDT 2011

Towers Watson

TW$63.18

Expert Opinions

Price/Volume Activity

Earnings Performance

Financial Metrics

Power Gauge Rating

TW Towers Watson

News Sentiment :Neutral

July 21, 2011

News Sentiment Rating

Neutral

Chaikin Sentiment GaugeTM

for TW is neutral. Stories concerning TW have abalanced or neutral sentiment.

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential. High Potential Neutral Low Potential

TW - Neutral

The Chaikin Power Gauge RatingTM

for TW is neutral with attractive financialmetrics, very strong earnings performance, bullish price/volume activity andvery positive expert opinions.

TW's earnings performance is very strong as a result of high earnings growthover the past 3-5 years.

TW's financial metrics are very good due to a high price to book value ratio.

Despite these bullish factors, Chaikin Power Tools has identified a negativetrend resulting in a neutral rating.

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Financials & Earnings

Business Value

Price to Sales Ratio

Return on Equity

Price to Book Value

LT Debt/Equity Ratio

Financial Metrics Financial Metrics Rating

Assets and Liabilities Valuation Returns

Bullish

TW's financial metrics are very good. The company does not hold much long termdebt and generates high free cash flow relative to market capitalization.

The rank is based on a low long term debt to equity ratio and relatively high cashflow.

Ratio TTM

Current Ratio 1.45

LT Debt/Equity 0.00

Ratio TTM

Price/Book 1.36

Price/Sales 1.96

Ratio TTM

Return on Invest 12.0%

Return on Equity 12.0%

Earnings Consistency

Projected P/E Ratio

Earnings Trend

Earnings Surprise

Earnings Growth

Earnings Performance Earnings Performance Rating

5 Year Revenue and Earnings Growth EPS Estimates

EPS Surprise EPS Quarterly Results

Very Bullish

TW's earnings performance has been very strong. The company has a history ofstrong earnings growth and has outperformed analysts' earnings estimates.

The rank is based on high earnings growth over the past 3-5 years, better thanexpected earnings in recent quarters, a relatively low projected P/E ratio andconsistent earnings over the past 5 years.

06/06 06/07 06/08 06/09 06/10

Revenue(M) 1,271.81 1,486.52 1,760.06 1,676.03 2,387.83

Rev % Growth - 16.88% 18.40% -4.77% 42.47%

EPS $2.11 $2.74 $3.65 $3.43 $2.04

EPS % Growth - 29.86% 33.21% -6.03% -40.52%

Factor Actual EPS Prev EST EPS Current Change

Quarterly EPS $0.45 $0.96 +0.51

Yearly EPS $2.04 $4.64 +2.60

Factor Actual EPS Growth Est EPS Growth Change

3-5 year EPS 18.24% 12.00% -6.24

Estimate Actual Difference % Difference

Latest Qtr $0.94 $1.26 $0.32 34.04

1 Qtr Ago $0.84 $0.91 $0.07 8.33

2 Qtr Ago $0.90 $0.71 $-0.19 -21.11

3 Qtr Ago $0.80 $0.69 $-0.11 -13.75

FY Qtr 1 Qtr 2 Qtr 3 Qtr 4 Total

06/08 $0.82 $0.93 $0.95 $0.73 $3.43

06/09 $0.70 $0.57 $0.12 $0.77 $2.16

06/10 $0.45 $0.65 $0.94 - $2.04

Fiscal Year End Month is June.

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Price Trend & Expert Opinions

Volume Trend

Price Trend ROC

Price Trend

Chaikin Money Flow

Relative Strength vs Market

Price/Volume Activity Price/Volume Activity Rating

Relative Strength vs S&P500 Index

Chart shows whether TW is performing better or worse than the market.

Chaikin Money Flow

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity Price Activity Volume Activity

Bullish

Price and volume activity for TW is bullish. TW is experiencing sustained buyingand has outperformed the S&P 500 over 26 weeks.

The rank for TW is based on its price strength versus the market, positive Chaikinmoney flow, a positive Chaikin price trend and a negative Chaikin price trendROC.

Factor Value

52 Week High 66.38

52 Week Low 41.13

% Change YTD Rel S&P 500 13.24%

Factor Value

% Change Price - 4 Weeks 0.21%

% Change Price - 24 Weeks 11.16%

% Change Price - 4 Wks Rel to S&P -4.57%

% Change Price - 24 Wks Rel to S&P 9.40%

Factor Value

Average Volume 20 Days 275,667

Average Volume 90 Days 327,438

Chaikin Money Flow Persistency 83%

Relative Strength vs Industry

Analyst Opinions

Insider Activity

Short Interest

Earnings Estimate Revisions

Expert Opinions Expert Opinions

Earnings Estimate Revisions Analyst Recommendations EPS Estimates Revision Summary

Very Bullish

Expert opinions about TW are very positive. Analysts are raising their EPSestimates for TW and shorting of TW is low.

The rank for TW is based on analysts revising earnings estimates upward, a lowshort interest ratio, insiders not purchasing significant amounts of stock, optimisticanalyst opinions and price strength of the stock versus the Business Serviceindustry group.

Current 7 Days Ago % Change

Current Qtr 0.90 0.90 0.00%

Next Qtr 0.96 0.96 0.00%

Current 30 Days Ago % Change

Current FY 3.77 3.77 0.00

Factor Value

Mean this Week Buy

Mean Last Week Buy

Change 0.00

Mean 5 Weeks Ago Buy

Last Week Last 4 Weeks

Up 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

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The Company & Its Competitors

TW's Competitors in Business Service

Company Power Historic EPS Projected EPS Profit Margin PEG PE Revenue(M)Gauge growth growth

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

IT 5.82% 20.67% 8.02% 1.28 32.64 1,288

CLGX -19.80% 8.50% -4.62% 1.79 13.24 1,623

News Headlines for TW

Towers Watson Launches ExecutiveCompensation Blog - Jul 18, 2011

Towers Watson Introduces Updated Version ofMoSes 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, butUnderleveraged, Towers Watson Study Finds -Feb 8, 2011

Towers Watson Completes Acquisition of EMB -Feb 1, 2011

Company Details Company Profile

TOWERS WATSON901 N. GLEBE ROADARLINGTON, VA 22203USAPhone: (703) 258-8000Fax: 703-258-8585Website:http://http://www.watsonwyatt.com/Full Time Employees: 7,700Sector: Business Services

Towers Watson & Co. is a global professional services company that helps organizationsimprove performance through effective people, risk and financial management. It offerssolutions in the areas of employee benefits, talent management, rewards, and risk andcapital management. The Company's benefits solutions cover health and group benefits,mergers and acquisitions, retirement, and technology and administration. Its risk andfinancial services solutions include financial modeling software, investment, reinsurance,insurance consulting, mergers and acquisitions, and risk management. Its talent andrewards solutions cover communication and change, employee surveys, HR functioneffectiveness, 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 NewYork.

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 calculatedby 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 thestrongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe.

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LM 2.3 DS 3.0 LS 2.1

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