Gartner Inc. ( IT Quick Quote IT - Free Report) have charted a solid trajectory, appreciating 43.7% year to date, ahead of 10% growth of the industry it belongs to and 13.2% rise of the Zacks S&P 500 composite. Image Source: Zacks Investment Research
Let’s delve into factors which have contributed to the company’s price performance.
Upbeat 2021 Guidance
Gartner raised its full-year 2021 guidance. The company now expects total revenues to be $4.51 billion compared with the prior guidance of $4.37 billion. The current Zacks Consensus Estimate of $4.50 billion lies below the updated guidance.
Adjusted EPS is now anticipated to be $6.25 compared with the prior guidance of $4.10. The current Zacks Consensus Estimate of $5.99 lies below the updated guidance.
Adjusted EBITDA is now projected to be $1 billion compared with the prior guidance of $760 million. Free cash flow is now anticipated to be $850 million compared with the prior guidance of $630 million.
Consecutive Earnings & Revenue Beat
Gartner came up with better-than-expected earnings and revenue performance in the past four quarters. The company’s bottom line continued to benefit from improvement in operational efficiency. Strength across the Research segment boosted the top line.
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 clients’ needs. This enables it to have a competitive advantage over 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 make way for a steadily improving revenue stream for the company.
Zacks Rank and Other Stocks to Consider
Gartner currently carries a Zacks Rank #1 (Strong Buy).You can see
. the complete list of today’s Zacks #1 Rank stocks here
Some other top-ranked stocks in the broader Zacks
Business Services sector include Equifax ( EFX Quick Quote EFX - Free Report) , Charles River ( CRAI Quick Quote CRAI - Free Report) and TransUnion ( TRU Quick Quote TRU - Free Report) , each carrying a Zacks Rank #2 (Buy).
Long-term (three to five years) expected earnings per share growth rate for Equifax, Charles River and TransUnion is projected at 14%, 15.5%, and 20.9%, respectively.
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