Stock of the Day

January 20, 2021

Gartner (IT)

$204.74
-$2.58 (-1.2%)
Market Cap: $12.99B

About Gartner

Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers executives and teams in an organization the opportunity to learn, share, and network. The Consulting segment offers market-leading research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.

Gartner Bull Case

Here are some ways that investors could benefit from investing in Gartner, Inc.:

  • Gartner, Inc. recently reported earnings per share of $4.37 for the quarter, significantly beating the analyst consensus estimate of $3.76 by $0.61, which demonstrates strong profitability and execution capability that can drive shareholder value.
  • The stock is currently trading at $194.19, which is above the 50-day simple moving average of $185.83 and the 200-day simple moving average of $161.67, indicating a positive technical trend and momentum that often attracts further institutional buying.
  • Short interest has decreased to 6,935,377 shares as of the September 30, 2026 record date, representing a 16.6% month-over-month decline, which suggests that short sellers are covering their positions and reducing bearish pressure on the stock price.
  • Several major financial institutions, including Morgan Stanley, Goldman Sachs, and UBS Group, have recently raised their price targets on the stock in August 2026, reflecting increased confidence in the company's future performance and potential for price appreciation.
  • Gartner, Inc. maintains a low beta of 0.98, meaning its stock price volatility is slightly lower than the overall market, which can provide a more stable investment profile for risk-averse investors seeking consistent returns.

Gartner Bear Case

Investors should be bearish about investing in Gartner, Inc. for these reasons:

  • The company's revenue declined by 0.6% year-over-year in the most recent quarter, indicating potential challenges in maintaining top-line growth despite strong earnings performance, which could limit long-term expansion prospects.
  • Corporate insiders have sold 6,043 shares worth $1,172,858 over the last 90 days, including significant sales by executives Robin Kranich and Yvonne Genovese, which may signal a lack of confidence in the stock's near-term upside from those closest to the company.
  • Zacks Research downgraded Gartner, Inc. from a "strong-buy" rating to a "hold" rating in a recent research report, suggesting that the firm's analysts believe the stock may be fairly valued or overvalued relative to its growth potential.
  • The stock is trading at $194.19, which is above the average analyst price target of $189.00, implying that the current market price may already reflect positive expectations and leaving limited room for further upside based on current consensus estimates.
  • Gartner, Inc. has a debt-to-equity ratio of 46.98, which is relatively high and indicates that the company relies significantly on debt financing, potentially increasing financial risk and interest expense obligations that could impact future earnings.
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