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IHS Markit (INFO) Stock Rises 16.8% in a Year: Here's Why
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Shares of IHS Markit Ltd. have gained 16.8% over the past year compared with 9.9% growth of the industry and against a 4.6% decline of the Zacks S&P 500 composite.
Let’s delve deeper into the factors, which have contributed to the company’s outperformance.
Consecutive Earnings Beat
IHS Markit reported back-to-back earnings beat in all the four quarters of fiscal 2019 as well as the first quarter of fiscal 2020. Solid operating performance is likely to have driven the company’s bottom line.
Diversified Global Customer Base
IHS Markit is benefiting from a well-diversified global customer base and strong brand recognition. The company has a consultative product development approach, which means it works closely with its customers in introducing offerings and enhancing the established ones. This, in turn, has helped it build strong customer relations over time. Currently, IHS Markit’s offerings are well established across multiple industries and geographies. The company intends to continue innovating and developing new product offerings, and invest primarily in automotive, energy and financial services.
Solid Recurring Revenue Generation
IHS Markit’s business model ensures a solid recurring revenue generation capacity. Its products and services are offered mainly through recurring fixed and variable fee agreements, which allow the company to generate stable revenues and cash flows. Its recurring revenues increased 5.2% in first-quarter fiscal 2020 and 11% in fiscal 2019, on a year-over-year basis.
Zacks Rank & Stocks to Consider
Currently, IHS Markit carries a Zacks Rank #3 (Hold).
Long-term expected EPS (three to five years) growth rate for CoreLogic, GreenSky and Huron Consulting is 11%, 12.9% and 13.5%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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IHS Markit (INFO) Stock Rises 16.8% in a Year: Here's Why
Shares of IHS Markit Ltd. have gained 16.8% over the past year compared with 9.9% growth of the industry and against a 4.6% decline of the Zacks S&P 500 composite.
Let’s delve deeper into the factors, which have contributed to the company’s outperformance.
Consecutive Earnings Beat
IHS Markit reported back-to-back earnings beat in all the four quarters of fiscal 2019 as well as the first quarter of fiscal 2020. Solid operating performance is likely to have driven the company’s bottom line.
Diversified Global Customer Base
IHS Markit is benefiting from a well-diversified global customer base and strong brand recognition. The company has a consultative product development approach, which means it works closely with its customers in introducing offerings and enhancing the established ones. This, in turn, has helped it build strong customer relations over time. Currently, IHS Markit’s offerings are well established across multiple industries and geographies. The company intends to continue innovating and developing new product offerings, and invest primarily in automotive, energy and financial services.
Solid Recurring Revenue Generation
IHS Markit’s business model ensures a solid recurring revenue generation capacity. Its products and services are offered mainly through recurring fixed and variable fee agreements, which allow the company to generate stable revenues and cash flows. Its recurring revenues increased 5.2% in first-quarter fiscal 2020 and 11% in fiscal 2019, on a year-over-year basis.
Zacks Rank & Stocks to Consider
Currently, IHS Markit carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are CoreLogic , GreenSky and Huron Consulting (HURN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term expected EPS (three to five years) growth rate for CoreLogic, GreenSky and Huron Consulting is 11%, 12.9% and 13.5%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>