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Here's Why You Should Retain S&P Global in Your Portfolio
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S&P Global Inc. (SPGI - Free Report) is currently benefitting from higher demand for business information services and strategic buyouts that are boosting the top line.
With expected long-term earnings per share (EPS) growth rate of 14.4% and a market cap of $42.2 billion, it is a stock that investors should retain in their portfolios now.
Factors that Bode Well for the Company
S&P Global is well poised to gain from increasing demand for business information services. Constantly rising volume of data from private and government organizations has augmented the demand for improved enterprise-wide performance visibility. Augmented demand for news, information and analytics solutions will drive growth of the market.
Strength in economy, leading to robust manufacturing and non-manufacturing activities as well as higher corporate spending post the tax reform, is expected to boost demand for the company’s offerings. So far this year, the company has acquired RateWatch, Kensho and Panjiva. RateWatch. The buyouts are likely to boost S&P Global’s bank data offering. The Kensho acquisition is expected to improve the company’s core operations by applying actionable insights through the use of AI solutions and sophisticated algorithms. The Panjiva buyout is likely to enhance the Global Market Intelligence's data and analytical offerings for diverse customers across the globe and generate higher revenues.
S&P Global had cash, cash equivalents and restricted cash balance of $2.2 billion at the end of third-quarter 2018. This factor provides S&P Global the flexibility to pursue any growth strategy.
In spite of significant growth prospects, S&P Global is not free from headwinds. Issuance in the United States and Asia has been lumpy for quite some time, which is weighing on Ratings revenue. Moreover, the market for credit rating, research, investment and advisory services is highly competitive. Nevertheless, we believe that economic stability, growing service demand and higher corporate spending bode well for the company.
A few better-ranked stocks in the Zacks Business Services sector are BG Staffing, Inc. (BGSF - Free Report) , The Interpublic Group of Companies, Inc. (IPG - Free Report) and Robert Half International Inc. (RHI - Free Report) , each carrying a Zacks Rank #2 (Buy).
The long-term expected EPS (three to five years) growth rate for BG Staffing, Interpublic and Robert Half is 20%, 7.6% and 13.3%, respectively.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Here's Why You Should Retain S&P Global in Your Portfolio
S&P Global Inc. (SPGI - Free Report) is currently benefitting from higher demand for business information services and strategic buyouts that are boosting the top line.
With expected long-term earnings per share (EPS) growth rate of 14.4% and a market cap of $42.2 billion, it is a stock that investors should retain in their portfolios now.
Factors that Bode Well for the Company
S&P Global is well poised to gain from increasing demand for business information services. Constantly rising volume of data from private and government organizations has augmented the demand for improved enterprise-wide performance visibility. Augmented demand for news, information and analytics solutions will drive growth of the market.
Strength in economy, leading to robust manufacturing and non-manufacturing activities as well as higher corporate spending post the tax reform, is expected to boost demand for the company’s offerings. So far this year, the company has acquired RateWatch, Kensho and Panjiva. RateWatch. The buyouts are likely to boost S&P Global’s bank data offering. The Kensho acquisition is expected to improve the company’s core operations by applying actionable insights through the use of AI solutions and sophisticated algorithms. The Panjiva buyout is likely to enhance the Global Market Intelligence's data and analytical offerings for diverse customers across the globe and generate higher revenues.
S&P Global had cash, cash equivalents and restricted cash balance of $2.2 billion at the end of third-quarter 2018. This factor provides S&P Global the flexibility to pursue any growth strategy.
S&P Global Inc. Price, Consensus and EPS Surprise
S&P Global Inc. Price, Consensus and EPS Surprise | S&P Global Inc. Quote
Wrapping Up
In spite of significant growth prospects, S&P Global is not free from headwinds. Issuance in the United States and Asia has been lumpy for quite some time, which is weighing on Ratings revenue. Moreover, the market for credit rating, research, investment and advisory services is highly competitive. Nevertheless, we believe that economic stability, growing service demand and higher corporate spending bode well for the company.
Zacks Rank & Stocks to Consider
Currently, S&P Global carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few better-ranked stocks in the Zacks Business Services sector are BG Staffing, Inc. (BGSF - Free Report) , The Interpublic Group of Companies, Inc. (IPG - Free Report) and Robert Half International Inc. (RHI - Free Report) , each carrying a Zacks Rank #2 (Buy).
The long-term expected EPS (three to five years) growth rate for BG Staffing, Interpublic and Robert Half is 20%, 7.6% and 13.3%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>