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Here's Why S&P Global (SPGI) is an Attractive Pick Right Now
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S&P Global, Inc.’s (SPGI - Free Report) shares have gained 5.1% in the past six months, outperforming its industry’s 3.8% increase. S&P Global drives growth through acquisitions, such as Market Scan, ChartIQ and Shades of Green. Recent service launches, like the Platts Dry Index and Supply Chain Console, further enhance market standing and innovation. It has a long-term earnings per share (EPS) growth rate of 13.13%.
Let us delve deeper into the reasons that make SPGI an attractive pick.
Solid Zacks Rank: SPGI currently sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) offer attractive investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Upbeat Earnings Expectations: Earnings growth and stock price gains often indicate a company’s solid prospects. For the fourth quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at $3.14 per share, suggesting a 23.6% rise from the year-ago reported figure. For fiscal 2024, the consensus mark for earnings is pinned at $12.61 per share, indicating a 12.7% increase from the year-ago reported figure.
Positive Earnings Surprise History: SPGI has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and matched on one instance, delivering an earnings surprise of 4%, on average.
Bullish Industry Rank: The industry to which S&P Global belongs currently has a Zacks Industry Rank of 111 (of 248 groups). Such a solid rank places the industry in the top 45% of the Zacks industries. Studies show that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.
A mediocre stock in a healthy group is likely to outperform a robust stock in a poor industry. Therefore, taking the industry’s performance into account becomes necessary.
Growth Factors: S&P Global pursues growth through strategic acquisitions, aiming to innovate, expand content and introduce new products. Notable transactions include acquiring Market Scan Information Systems, Inc. on Feb 17, 2023, enhancing mobility services. The acquisition of ChartIQ on Jan 5, 2023, strengthens S&P Global Market Intelligence. On Dec 6, 2022, S&P Global acquired the Shades of Green business, improving second-party opinions. The merger with IHS Markit, completed on Feb 28, 2022, enhances data and analytics offerings. The acquisition of The Climate Service on Jan 4, 2022, bolsters S&P Global's ESG capabilities and climate-related data and analytics.
S&P Global's growth has received a boost from recent service launches, positively influencing its market standing. Platts (S&P Global Commodity Insights) unveiled the Platts Dry Index for dry bulk freight, covering Capesize, Panamax/Kamsarmax, Ultramax and Supramax segments. S&P Global Market Intelligence introduced the Supply Chain Console, providing a comprehensive view of supply-chain dynamics.
Completing the suite for all G-7 countries, the S&P Global Canada Services Purchasing Managers' Index was launched. Platts added daily Southeast Asia LNG cargo assessments for improved price transparency. Collaborating with REsurety, Platts pioneered Emissions-Adjusted Renewable Energy Certificates price assessments, driving innovation in commodities and energy markets.
Other Stocks to Consider
Here are some other top-ranked stocks from the broader Business Services sector that you can consider for your portfolio.
Broadridge Financial Solutions (BR - Free Report) : The Zacks Consensus Estimate of the company’s 2023 revenues indicates 7.7% growth from the year-ago reported figure, whereas the same for earnings suggests a 10.1% rise. BR has beaten the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.
Booz Allen (BAH - Free Report) : The Zacks Consensus Estimate of BAH’s 2023 revenues indicates 13% growth from the year-ago reported figure, whereas the same for earnings suggests a rise of 10.3%. The company has beaten the consensus estimate in three of the four quarters and missed on one instance, the average surprise being 7.7%.
BAH carries a Zacks Rank of 2, at present.
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Here's Why S&P Global (SPGI) is an Attractive Pick Right Now
S&P Global, Inc.’s (SPGI - Free Report) shares have gained 5.1% in the past six months, outperforming its industry’s 3.8% increase. S&P Global drives growth through acquisitions, such as Market Scan, ChartIQ and Shades of Green. Recent service launches, like the Platts Dry Index and Supply Chain Console, further enhance market standing and innovation. It has a long-term earnings per share (EPS) growth rate of 13.13%.
Let us delve deeper into the reasons that make SPGI an attractive pick.
Solid Zacks Rank: SPGI currently sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) offer attractive investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Upbeat Earnings Expectations: Earnings growth and stock price gains often indicate a company’s solid prospects. For the fourth quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at $3.14 per share, suggesting a 23.6% rise from the year-ago reported figure. For fiscal 2024, the consensus mark for earnings is pinned at $12.61 per share, indicating a 12.7% increase from the year-ago reported figure.
S&P Global Inc. Price and Consensus
S&P Global Inc. price-consensus-chart | S&P Global Inc. Quote
Positive Earnings Surprise History: SPGI has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and matched on one instance, delivering an earnings surprise of 4%, on average.
Bullish Industry Rank: The industry to which S&P Global belongs currently has a Zacks Industry Rank of 111 (of 248 groups). Such a solid rank places the industry in the top 45% of the Zacks industries. Studies show that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.
A mediocre stock in a healthy group is likely to outperform a robust stock in a poor industry. Therefore, taking the industry’s performance into account becomes necessary.
Growth Factors: S&P Global pursues growth through strategic acquisitions, aiming to innovate, expand content and introduce new products. Notable transactions include acquiring Market Scan Information Systems, Inc. on Feb 17, 2023, enhancing mobility services. The acquisition of ChartIQ on Jan 5, 2023, strengthens S&P Global Market Intelligence. On Dec 6, 2022, S&P Global acquired the Shades of Green business, improving second-party opinions. The merger with IHS Markit, completed on Feb 28, 2022, enhances data and analytics offerings. The acquisition of The Climate Service on Jan 4, 2022, bolsters S&P Global's ESG capabilities and climate-related data and analytics.
S&P Global's growth has received a boost from recent service launches, positively influencing its market standing. Platts (S&P Global Commodity Insights) unveiled the Platts Dry Index for dry bulk freight, covering Capesize, Panamax/Kamsarmax, Ultramax and Supramax segments. S&P Global Market Intelligence introduced the Supply Chain Console, providing a comprehensive view of supply-chain dynamics.
Completing the suite for all G-7 countries, the S&P Global Canada Services Purchasing Managers' Index was launched. Platts added daily Southeast Asia LNG cargo assessments for improved price transparency. Collaborating with REsurety, Platts pioneered Emissions-Adjusted Renewable Energy Certificates price assessments, driving innovation in commodities and energy markets.
Other Stocks to Consider
Here are some other top-ranked stocks from the broader Business Services sector that you can consider for your portfolio.
Broadridge Financial Solutions (BR - Free Report) : The Zacks Consensus Estimate of the company’s 2023 revenues indicates 7.7% growth from the year-ago reported figure, whereas the same for earnings suggests a 10.1% rise. BR has beaten the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.
The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Booz Allen (BAH - Free Report) : The Zacks Consensus Estimate of BAH’s 2023 revenues indicates 13% growth from the year-ago reported figure, whereas the same for earnings suggests a rise of 10.3%. The company has beaten the consensus estimate in three of the four quarters and missed on one instance, the average surprise being 7.7%.
BAH carries a Zacks Rank of 2, at present.