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S&P Global (SPGI) Hits 52-Week High: What's Driving It?
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Shares of S&P Global Inc. (SPGI - Free Report) scaled a 52-week high of $401.27 in the trading session on Jun 17, before closing a tad lower at $400.16.
The company’s shares have charted a solid trajectory, appreciating 21.8% year to date compared with 6.7% growth of the industry it belongs to and a 13.2% increase of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
Notably, S&P Global has witnessed a 1.9% increase in the share price since it posted first-quarter 2021 results.
Let’s find out what’s supporting the uptick.
Upbeat 2021 Guidance
S&P Global raised its 2021 guidance. The company now expects adjusted EPS of $12.55-$12.75 compared with the previously mentioned $12.25-$12.45. The Zacks Consensus Estimate of $12.72 lies within the company’s current guidance.
Free cash flow is anticipated between $3.4 billion and $3.5 billion compared with the previously stated $3.3-$3.4 billion.
Consecutive Earnings & Revenue Beat
S&P Global reported earnings and revenue beat in all four quarters of 2020 as well as first-quarter 2021. While the bottom line gained from revenue growth and productivity initiatives, the top line performed well on the back of strength across all segments, namely S&P Global Ratings, S&P Global Market Intelligence, S&P Global Platts and S&P Dow Jones Indices.
Acquisitions Bode Well
Acquisitions have been key growth strategies for S&P Global, helping it continuously innovate, increase differentiated content and develop products.
In 2020, the company completed acquisitions of the ESG Ratings Business (from RobecoSAM) and Greenwich Associates LLC. While the ESG Ratings Business is expected to boost the company’s position as a premier resource for essential ESG data, ratings, benchmarks and insights; Greenwich can complement its existing product portfolio and expand its offerings to new segments across financial services, including commercial banks, and asset and wealth managers.
The company is expected to continue adding advanced technology and data sets through acquisitions, which, in turn, should boost its top and bottom-line growth.
Long-term (three-five years) earnings per share growth rate for Equifax, Charles River and TransUnion are projected at 14%, 15.5%, and 20.9%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
S&P Global (SPGI) Hits 52-Week High: What's Driving It?
Shares of S&P Global Inc. (SPGI - Free Report) scaled a 52-week high of $401.27 in the trading session on Jun 17, before closing a tad lower at $400.16.
The company’s shares have charted a solid trajectory, appreciating 21.8% year to date compared with 6.7% growth of the industry it belongs to and a 13.2% increase of the Zacks S&P 500 composite.
Notably, S&P Global has witnessed a 1.9% increase in the share price since it posted first-quarter 2021 results.
Let’s find out what’s supporting the uptick.
Upbeat 2021 Guidance
S&P Global raised its 2021 guidance. The company now expects adjusted EPS of $12.55-$12.75 compared with the previously mentioned $12.25-$12.45. The Zacks Consensus Estimate of $12.72 lies within the company’s current guidance.
Free cash flow is anticipated between $3.4 billion and $3.5 billion compared with the previously stated $3.3-$3.4 billion.
Consecutive Earnings & Revenue Beat
S&P Global reported earnings and revenue beat in all four quarters of 2020 as well as first-quarter 2021. While the bottom line gained from revenue growth and productivity initiatives, the top line performed well on the back of strength across all segments, namely S&P Global Ratings, S&P Global Market Intelligence, S&P Global Platts and S&P Dow Jones Indices.
Acquisitions Bode Well
Acquisitions have been key growth strategies for S&P Global, helping it continuously innovate, increase differentiated content and develop products.
In 2020, the company completed acquisitions of the ESG Ratings Business (from RobecoSAM) and Greenwich Associates LLC. While the ESG Ratings Business is expected to boost the company’s position as a premier resource for essential ESG data, ratings, benchmarks and insights; Greenwich can complement its existing product portfolio and expand its offerings to new segments across financial services, including commercial banks, and asset and wealth managers.
The company is expected to continue adding advanced technology and data sets through acquisitions, which, in turn, should boost its top and bottom-line growth.
Zacks Rank and Stocks to Consider
S&P Global currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Equifax (EFX - Free Report) , Charles River (CRAI - Free Report) and TransUnion (TRU - Free Report) , each presently carrying a Zacks Rank #2 (Buy).
Long-term (three-five years) earnings per share growth rate for Equifax, Charles River and TransUnion are projected at 14%, 15.5%, and 20.9%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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