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If You Invested $1000 in Gartner 10 Years Ago, This Is How Much You'd Have Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Gartner (IT - Free Report) ten years ago? It may not have been easy to hold on to IT for all that time, but if you did, how much would your investment be worth today?

Gartner's Business In-Depth

With that in mind, let's take a look at Gartner's main business drivers.

Headquartered in Stamford, Connecticut, Gartner, Inc. is reportedly the worlds leading information technology research and advisory firm. The company offers rich domain expertise and technology-related insight necessary for informed decision-making process.

Over the years, Gartners comprehensive services portfolio has enabled customers across the spectrum to research, analyze and interpret the business with greater precision, efficiency and discipline.

The companys long-term strategy is to increase business volume and penetration with most important clients, recognizing relationships with the highest sales potential and expanding them through offering strategically relevant research and advice.

Gartners diversified business model utilizes depth and breadth of intellectual capital to create and distribute research content as broadly as possible through published reports, interactive tools, briefings, consulting, advisory services and conferences.

The company operates through three business segments: Research, Conference and Consulting.

Research segment: This segment is the fundamental building block for all Gartner services and combines proprietary research methodologies with extensive industry and academic relationships to offer in-depth analysis in the form of reports, briefings, updates and related tools primarily through a subscription-based, digital media service. Research segment generates the lions share of the total revenue, contributing 88% of 2021 GAAP revenues.

Consulting segment: This segment offers fact-based consulting services for optimal business performance through its unique research insight, benchmarking data, problem-solving methodologies and hands-on experience. These services are primarily provided to CIOs and other professionals responsible for IT applications, enterprise architecture, go-to-market strategies, infrastructure and operations, program and portfolio management, and sourcing and vendor relationships. Consulting segment accounted for 9% of 2021 GAAP revenues.

The Conferences segment accounted for 3% of 2021 GAAP revenues. The Events segment has been renamed as Conferences segment as part of business operations alignment.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Gartner ten years ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in August 2012 would be worth $6,175.79, or a 517.58% gain, as of August 25, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 193.44% and gold's return of 0.79% over the same time frame.

Looking ahead, analysts are expecting more upside for IT.

Gartner offers timely, thought-provoking and comprehensive analysis that is known for its high quality, independence and objectivity. It's research reports have become indispensable tools for various companies across different sectors, strengthening its leading position in the market. The company has a large and diverse addressable market with low customer concentration that mitigates operating risks. Consistency in rewarding shareholders through share buybacks boost investor confidence and positively the company's bottom line. On the flip side, continuous investments to retain a competitive edge and fend off competition has increased the company's expenses and contracted margin. Foreign currency exchange rate fluctuations and stiff competition act as major concerns. Partly due to these headwinds, the stock has declined in the past year.

Shares have gained 15.42% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.

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