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Gartner (IT) Gains 14% in the Past 3 Months: Here's How

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Shares of Gartner, Inc. (IT - Free Report) have rallied 14.3% in the past three months against a 3.2% decline of the industry it belongs to.

Reasons for the Upside

Over the years, Gartner research reports have become indispensable tools for diverse companies across different sectors, strengthening its leading position in the market. Using advanced technologies to collect and analyze troves of data, Gartner draws on unique data assets and deep domain expertise to provide key insights and decision support solutions for an informed decision-making process. These insights are typically drawn from a critical fact base, collated from interactions with clients in more than 15,000 distinct organizations worldwide.

Gartner has a large and diverse addressable market with low customer concentration that mitigates 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 against its rivals. Leveraging the breadth and depth of its intellectual capital, Gartner creates and distributes proprietary research content as broadly as possible.

Gartner, Inc. Revenue (TTM)

Gartner, Inc. Revenue (TTM)

Gartner, Inc. revenue-ttm | Gartner, Inc. Quote

Gartner's endeavor to reward its shareholders in the form of share repurchases is appreciable. In 2021, 2020 and 2019, Gartner repurchased 7.3 million, 1.2 million and 1.4 million shares for $1.7 billion, $176.3 million and $199 million, respectively. Such moves indicate the company’s commitment to creating value for shareholders and underline its business confidence. Also, these moves help instill investors’ confidence in the stock and positively impact earnings per share.

Favorable Estimates Revision

Driven by the above tailwinds, the Zacks Consensus Estimate for 2022 earnings has moved up 12.6% to $9.1 per share in the past 60 days.

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 are Avis Budget Group, Inc. (CAR - Free Report) , Automatic Data Processing, Inc. (ADP - Free Report)  and CRA International, Inc. (CRAI - Free Report) .

Avis Budget sports a Zacks Rank #1 at present. CAR has an earnings growth rate of 109.1% for 2022.

Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.

Automatic Data Processing carries a Zacks Rank #2 (Buy) at present. ADP has a long-term earnings growth expectation of 12%.

ADP delivered a trailing four-quarter earnings surprise of 5%, on average.

CRA International carries a Zacks Rank of 2, currently. CRAI has a long-term earnings growth expectation of 14.3%.

CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.

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