We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Investor Should Hold S&P Global (SPGI) Stock Now
Read MoreHide Full Article
S&P Global Inc. (SPGI - Free Report) is currently benefiting from its acquisitions and pro-investor steps.
SPGI’s revenues are anticipated to grow 40.7% and 6.6% in 2022 and 2023, respectively. Shares of SPGI have jumped 4.2% in the past three-month period compared with 0.3% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Factors That Augur Well
Acquisitions have always carved a key growth trajectory for S&P Global. The recent buyout of IHS Markit is expected to enhance its data and analytics offerings. Another acquisition of The Climate Service is expected to enhance SPGI's portfolio of essential environmental, social and governance insights and solutions.
We are impressed with S&P Global’s endeavors to reward its shareholders through share repurchases and dividend payments. In 2021, S&P Global returned $743 million to its shareholders in the form of dividend payments. However, it did not repurchase any shares last year due to the pending merger with IHS Markit.
In 2020, SPGI returned $1.8 billion to its shareholders, $1.2 billion through share repurchases and $645 million as dividend payouts. In 2019, S&P Global returned $1.8 billion to its shareholders with $1.2 billion as share repurchases and $560 million of dividend payments.
Such shareholder-friendly moves underpin S&P Global’s commitment of creating value for its shareholders and underlining its confidence in its business. These initiatives not only raise investors’ optimism on the stock but also positively impact the earnings per share.
A Key Risk
S&P Global's current ratio (a measure of liquidity) at the end of third-quarter 2022 was pegged at 0.83, lower than the current ratio of 1.26 reported at the end of second-quarter 2022 and the prior-year quarter’s 2.26. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
Cross Country Healthcare is currently Zacks #2 Ranked. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1%, on average.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Here's Why Investor Should Hold S&P Global (SPGI) Stock Now
S&P Global Inc. (SPGI - Free Report) is currently benefiting from its acquisitions and pro-investor steps.
SPGI’s revenues are anticipated to grow 40.7% and 6.6% in 2022 and 2023, respectively. Shares of SPGI have jumped 4.2% in the past three-month period compared with 0.3% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Factors That Augur Well
Acquisitions have always carved a key growth trajectory for S&P Global. The recent buyout of IHS Markit is expected to enhance its data and analytics offerings. Another acquisition of The Climate Service is expected to enhance SPGI's portfolio of essential environmental, social and governance insights and solutions.
We are impressed with S&P Global’s endeavors to reward its shareholders through share repurchases and dividend payments. In 2021, S&P Global returned $743 million to its shareholders in the form of dividend payments. However, it did not repurchase any shares last year due to the pending merger with IHS Markit.
In 2020, SPGI returned $1.8 billion to its shareholders, $1.2 billion through share repurchases and $645 million as dividend payouts. In 2019, S&P Global returned $1.8 billion to its shareholders with $1.2 billion as share repurchases and $560 million of dividend payments.
Such shareholder-friendly moves underpin S&P Global’s commitment of creating value for its shareholders and underlining its confidence in its business. These initiatives not only raise investors’ optimism on the stock but also positively impact the earnings per share.
A Key Risk
S&P Global's current ratio (a measure of liquidity) at the end of third-quarter 2022 was pegged at 0.83, lower than the current ratio of 1.26 reported at the end of second-quarter 2022 and the prior-year quarter’s 2.26. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
S&P Global currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
Cross Country Healthcare is currently Zacks #2 Ranked. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1%, on average.