Shares of Gartner, Inc. IT have risen 38% over the past year, outperforming the 12.8% growth of the industry it belongs to.
The company has an expected long-term (three to five years) EPS growth rate of 10.8%. Its earnings for 2024 and 2025 are anticipated to grow 2% and 11%, respectively, year over year.
Gartner, Inc. Price
Gartner, Inc. price | Gartner, Inc. Quote
Factors That Bode Well
Gartner’s research reports are essential for companies, bolstering their market position. IT utilizes advanced technologies and deep domain expertise to provide key insights for informed decision-making. These key insights are drawn from interactions with more than 15,000 organizations worldwide.
Gartner’s broad market reach and diversified customer base reduce operational risks. Its integrated research and consulting team provides a competitive advantage. Leveraging extensive intellectual resources, Gartner distributes proprietary research widely through various channels, ensuring consistent revenue growth. Diligent execution of operational plans has led to sustained double-digit growth for more than a decade.
Gartner provides high-quality, unbiased analysis, helping organizations save money with actionable insights.
IT’s commitment to reward its shareholders through share repurchase is commendable. The company repurchased shares worth $0.6 billion, $1 billion and $1.7 billion in 2023, 2022 and 2021, respectively.These actions highlight the company’s commitment to shareholder value and confidence in its business.
Some Risks
Gartner faces robust competition from numerous independent providers in a market with low entry barriers. Its significant international operations make it vulnerable to foreign exchange risks, with fluctuations in currencies such as the British pound, Euro, Canadian dollar, Australian dollar and Japanese Yen directly impacting financial outcomes.
The company faces increased talent costs due to its reliance on foreign talent. While automation and AI offer promising opportunities, they also introduce uncertainty by enabling clients to independently adopt new performance-enhancing methods.
Zacks Rank and Stocks to Consider
Gartner currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader Zacks Business Services sector are Aptiv APTV and DocuSign (DOCU) . Each stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
APTV has a long-term earnings growth expectation of 16.4%.
The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat is 12.18%. Shares of Aptiv have risen 6.6% in the past three months.
DOCU has a long-term earnings growth expectation of 13.3%.
The company delivered an earnings surprise of 23.7%, on average, surpassing the Zacks Consensus Estimate in three of the trailing four quarters and missing once. Shares of DocuSign have rallied 16% in the past three months.
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Gartner, Inc. (IT) : Free Stock Analysis Report
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DocuSign (DOCU) : Free Stock Analysis Report