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IHS Markit to Gain From Partnership With Windward: Here's Why

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So far this year, shares of IHS Markit Ltd. have gained 17.2%, outperforming the 11.5% rise of the industry it belongs to and 3.9% rise of the Zacks S&P 500 Composite Index.

 

The company recently entered into a strategic agreement with Windward aimed at offering latest data on vessel features, casualties and ports state control.

Based in Tel Aviv and London, Windward is a maritime risk analytics startup that helps marine insurers with risk selection and pricing. It also helps governments and organizations like the United Nations Security Council locate threat-posing vessels.

Guy Sear, executive director of Maritime & Trade at IHS Markit, stated that the partnership will help targeted customers receive high quality data to assist them in decision making.

A Win-Win Situation

IHS Markit has one of the biggest shipping databases in the world. The partnership is likely to drive the company’s Transportation segment, which includes Automotive, Maritime & Trade (“M&T”) and Aerospace, Defense & Security (“AD&S”) offerings.

Performance of the segment was strong in the last reported quarter with revenues improving 16% year over year on a reported basis and 9% organically. The segment contributed around 30% to IHS Markit’s total revenues in third-quarter fiscal 2018.

As far as Windward is concerned, the collaboration should boost its risk modelling capabilities and enhance accuracy of maritime data and analytics tools.

Zacks Rank & Stocks to Consider

Currently, IHS Markit is a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked stocks in the broader Business Services sector include Paychex, Inc. (PAYX - Free Report) , Genpact Limited (G - Free Report) and WEX Inc. (WEX - Free Report) , each carrying a Zacks Rank #2 (Buy). The long-term expected EPS (three to five years) growth rate for Paychex, Genpact and WEX is 8.5%, 10% and 15%, respectively.

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