The market's choppy/consolidating pattern continues, suggesting the need for an additional defensive play or two (or perhaps more). And in this category Hewitt Associates is worth a review.

Hewitt Associates, Inc. (NYSE: HEW) provides a variety of human resource-related services including payroll, organizational change management, talent consulting, reward consulting, and benefits outsourcing (medical, 301K, pensions).

Analysts expect 2008 revenue growth of 4-7% with strong gains in consulting. Benefits administration revenue should advance 3-5%. Margins are adequate. The Reuters FY 2007/FY 2008 EPS consensus estimates for HEW are $1.75 to $2.12.
Further, in general, analysts believe investments aimed at strengthening business segments and streamlining costs have better-positioned HEW for the immediate years ahead.

The risks? Analysts have an eye on increased competition in the benefits outsourcing segment, which may hinder client growth.

The First Call mean rating for HEW is: Hold [13 firms]. Mean 2008 target: $38.00 [high: $44, low: $29].

Stock Analysis: Hewitt Associates is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from HEW's shares. Sell/Stop Loss if you were to purchase shares in this company: $18.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.