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Gartner (IT) Hits 52-Week High: What's Driving the Stock?
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Shares of Gartner Inc. (IT - Free Report) scaled a 52-week high of $169.77 in the trading session on Jan 12, before closing a tad lower at $168.58.
The company’s shares have charted a solid trajectory in recent times, appreciating 40.6% in the past six months, ahead of 19.6% growth of the industry it belongs to and 19.6% surge of the Zacks S&P 500 composite.
Let’s find out what’s supporting the uptick.
Consecutive Earnings Beat
Gartner came up with better-than-expected earnings performance in all four quarters of 2019 as well as in the first three quarters of 2020. The company’s bottom line continued to benefit from improvement in operational efficiency.
Upbeat 2020 Guidance
Gartner raised its full-year 2020 guidance. The company now expects total revenues to be $4.05 billion compared with the prior guidance of $3.88 billion. The current Zacks Consensus Estimate of $4.07 is higher than the updated guidance.
Adjusted EPS is anticipated to be $4.07 compared with the prior guidance of $3.08. The current Zacks Consensus Estimate of $4.13 is higher than the updated guidance.
Adjusted EBITDA is projected to be $740 million compared with the prior guidance of $635 million. Free cash flow is anticipated to be $625 million compared with the prior guidance of $425 million.
Diverse Addressable Market
Gartner has a large and diverse addressable market with low customer concentration, which helps in mitigating operating risks. Operating in an industry with low barriers to entry, Gartner has an integrated research and consulting team designed to best serve client needs. This enables it to have a competitive advantage against its rivals. Leveraging the breadth and depth of its intellectual capital, Gartner creates and distributes proprietary research content as broadly as possible via published reports, interactive tools, facilitated peer networking, briefings, consulting and advisory services, and events. These facilitate a steadily improving revenue stream for the company.
The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Huron Consulting and NV5 Global is 3.5%, 14% and 16.8%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Gartner (IT) Hits 52-Week High: What's Driving the Stock?
Shares of Gartner Inc. (IT - Free Report) scaled a 52-week high of $169.77 in the trading session on Jan 12, before closing a tad lower at $168.58.
The company’s shares have charted a solid trajectory in recent times, appreciating 40.6% in the past six months, ahead of 19.6% growth of the industry it belongs to and 19.6% surge of the Zacks S&P 500 composite.
Let’s find out what’s supporting the uptick.
Consecutive Earnings Beat
Gartner came up with better-than-expected earnings performance in all four quarters of 2019 as well as in the first three quarters of 2020. The company’s bottom line continued to benefit from improvement in operational efficiency.
Upbeat 2020 Guidance
Gartner raised its full-year 2020 guidance. The company now expects total revenues to be $4.05 billion compared with the prior guidance of $3.88 billion. The current Zacks Consensus Estimate of $4.07 is higher than the updated guidance.
Adjusted EPS is anticipated to be $4.07 compared with the prior guidance of $3.08. The current Zacks Consensus Estimate of $4.13 is higher than the updated guidance.
Adjusted EBITDA is projected to be $740 million compared with the prior guidance of $635 million. Free cash flow is anticipated to be $625 million compared with the prior guidance of $425 million.
Diverse Addressable Market
Gartner has a large and diverse addressable market with low customer concentration, which helps in mitigating operating risks. Operating in an industry with low barriers to entry, Gartner has an integrated research and consulting team designed to best serve client needs. This enables it to have a competitive advantage against its rivals. Leveraging the breadth and depth of its intellectual capital, Gartner creates and distributes proprietary research content as broadly as possible via published reports, interactive tools, facilitated peer networking, briefings, consulting and advisory services, and events. These facilitate a steadily improving revenue stream for the company.
Zacks Rank and Other Stocks to Consider
Gartner currently carries a Zacks Rank #2 (Buy).
Some other top-rankedstocks in the broader Zacks Business Services sector are ManpowerGroup (MAN - Free Report) , Huron Consulting (HURN - Free Report) and NV5 Global (NVEE - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Huron Consulting and NV5 Global is 3.5%, 14% and 16.8%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>