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Here's Why You Should Retain Gartner Stock in Your Portfolio

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Gartner, Inc. (IT - Free Report) is currently benefitting from a large and diverse addressable market as well as CEB buyout that are boosting its top line.

With expected long-term earnings per share (EPS) growth rate of 14.7% and a market cap of $11.5 billion, it seems to be a stock that investors should retain in their portfolios now.

Factors That Bode Well for the Company

Gartner is well poised to gain from increasing demand for information technology services. To keep abreast of the developments in the dynamic and complex industry, business enterprises and government agencies solicit the company’s research and consultancy services. This provides Gartner a strong value proposition.

The company has a large and diverse addressable market with low customer concentration that lowers operating risks. The company enjoys a steadily improving revenue stream and competitive advantage by leveraging the breadth as well as depth of intellectual capital. Notably, the company has a strong cash flow and a healthy balance sheet position.

Gartner utilizes advanced technologies to extract unique data assets and deep domain expertise for the purpose of providing key insights as well as decision support solutions for informed decision-making process. Owing to this, the company’s research reports are indispensable for diverse companies across different sectors, which strengthen Gartner’s lead position in the market.

The acquisition of CEB further reinforces the company’s market strength. The combination of Gartner’s analyst-driven, syndicated research and advisory services with CEB’s best practice and talent management insights across a range of business functions provides a comprehensive and differentiated suite of services portfolio across the globe. The acquisition of L2 boosts Gartner’s marketing-focused business.

Gartner, Inc. Price, Consensus and EPS Surprise

 

Gartner, Inc. Price, Consensus and EPS Surprise | Gartner, Inc. Quote

 

Wrapping Up

In spite of significant growth prospects, Gartner is not free from headwinds. The company faces stiff competition from other players in the market that is characterized by limited barriers to entry. Although Gartner is widely viewed as a secular growth company, some of its services are cyclically sensitive. Nevertheless, we believe that a diversified portfolio of services bode well.

Zacks Rank & Stocks to Consider

Currently, Gartner carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked stocks in the Zacks Business Services sector are Paychex, Inc. (PAYX - Free Report) , Waste Management, Inc. (WM - Free Report) and Navigant Consulting, Inc. , each carrying a Zacks Rank #2 (Buy).
The long-term expected EPS (three to five years) growth rate for Paychex, Waste Management and Navigant Consulting is 8.8%, 12.3% and 13.5%, respectively.

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