Stock of the Day

January 20, 2021

Gartner (IT)

$140.45
-$2.44 (-1.7%)
Market Cap: $9.57B

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 (EPS) of $3.32 for the latest quarter, exceeding analysts' expectations, which indicates strong financial performance and effective management.
  • Gartner has a high return on equity of 161.39%, suggesting that the company is highly efficient in generating profits from its equity investments.
  • The current stock price is around $162, reflecting a stable valuation in the market, which may attract investors looking for solid investment opportunities.
  • Analysts forecast an EPS of 13.65 for the current fiscal year, indicating potential growth and profitability in the near future.
  • Despite a slight decline in revenue year-over-year, Gartner's net margin of 11.44% shows that the company maintains a healthy profit margin, which is crucial for long-term sustainability.

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 1.5% compared to the same period last year, which may raise concerns about its growth trajectory.
  • Several analysts have downgraded their price targets for Gartner, indicating a lack of confidence in the stock's short-term performance.
  • With a consensus target price of $173.10, the stock may not offer significant upside potential compared to its current price, which could limit returns for investors.
  • Two analysts have issued a Sell rating, suggesting that there are concerns about the company's future performance and market position.
  • Market sentiment appears mixed, with a majority of analysts rating the stock as Hold, indicating uncertainty about its future growth prospects.

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