Stock of the Day

January 20, 2021

Gartner (IT)

$198.14
-$0.25 (-0.1%)
Market Cap: $12.53B

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.:

  • The company reported earnings per share of $4.37 for the latest quarter, significantly exceeding analysts' expectations, indicating strong financial performance.
  • Gartner, Inc. has a remarkable return on equity of over 525%, showcasing its efficiency in generating profits from shareholders' equity.
  • Recent analyst upgrades, including a "strong-buy" rating from Zacks Research, suggest positive market sentiment and potential for stock price appreciation.
  • The current stock price is around $190, reflecting a solid valuation in light of the company's robust earnings and growth prospects.
  • Gartner, Inc. has set a fiscal year 2026 guidance of 14.000 EPS, indicating confidence in future earnings growth.

Gartner Bear Case

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

  • The company's revenue for the latest quarter was down slightly compared to the same period last year, which may raise concerns about growth sustainability.
  • Despite positive earnings, the stock has received mixed ratings from analysts, with several holding a "neutral" or "hold" rating, indicating uncertainty in future performance.
  • Insider selling activity, including significant sales by executives, could signal a lack of confidence in the stock's short-term prospects.
  • Market volatility and economic uncertainties could impact Gartner, Inc.'s performance, especially in the technology sector.
  • Analysts have varying price targets, with some suggesting limited upside potential, which may deter risk-averse investors.

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