Back to top

Image: Shutterstock

S&P Global (SPGI) Rises 22% in a Year: What You Should Know

Read MoreHide Full Article

S&P Global Inc. (SPGI - Free Report) has had an impressive run over the past year. The stock has gained 22%, outperforming the 19% rise of the industry it belongs to.

Reasons Behind the Rally

S&P Global is benefiting from the growing demand for business information services. The constantly increasing volume of data from private and government organizations has augmented the demand for improved enterprise-wide financial performance visibility. Increased demand for news, information and analytics solutions is driving the growth of the market. The industry is also benefiting from the rising demand for risk mitigation.

SPGI has managed to grow, banking on its cost synergies, timing and prioritizing of strategic investments. The company has taken steps to optimize its operations, portfolio and capital structure. Revenues and adjusted EPS have increased 7.3% and 23.2% year over year, respectively.

The 2023 acquisition of Market Scan Information Systems has strengthened S&P Global’s Sales Optimization tools, positioning itto expand in new growth markets. Another acquisition, ChartIQ, strengthened the company’s S&P Global Market Intelligence division.

Commitment to shareholder returns makes SPGI a reliable way for investors to compound wealth over the long term. The company paid $1.1 billion, $1 billion and $743 million as dividends in 2023, 2022 and 2021, respectively.

Zacks Rank and Stocks to Consider

S&P Global currently carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks from the broader Zacks Business Services sector are Core & Main (CNM - Free Report) and Barrett Business Services (BBSI - Free Report) .

Core & Main currently sports a Zacks Rank of 1 (Strong Buy). It has a long-term earnings growth expectation of 12.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

CNM delivered a trailing four-quarter earnings surprise of 1.5%, on average.

Barrett Business Servicescurrently carries a Zacks Rank of 2 (Buy). BBSI has a long-term earnings growth expectation of 14%.

BBSI delivered a trailing four-quarter earnings surprise of 77.7%, on average.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Barrett Business Services, Inc. (BBSI) - free report >>

S&P Global Inc. (SPGI) - free report >>

Core & Main, Inc. (CNM) - free report >>

Published in