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Here's Why Investors Should Bet on Gartner (IT) Stock Now

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Gartner, Inc. (IT - Free Report) has performed well in the past three months and shows potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.

Let’s look at the factors that make the stock an attractive pick.

An Outperformer: A glance at IT’s price trend shows that its shares have rallied 15.9% in the past three-month period against a 1.6% decline of the industry it belongs to.

Zacks Investment Research
Image Source: Zacks Investment Research

Solid Rank: Gartner currently sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank of 1 or 2 (Buy) offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: Four estimates for 2022 have moved north in the past 60 days versus no southward revision, suggesting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2022 earnings has moved up 11.5% in the past 60 days.

Positive Earnings Surprise History: Gartner has an impressive earnings surprise history. The bottom line outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 25.3%.

Strong Revenue Prospects: The Zacks Consensus Estimate for 2022 revenues is pegged at $5.4 billion, indicating growth of 13.7% from the year-ago reported figure. Moreover, revenues are expected to register 10.3% growth in 2023.  

Key Driving Factors: Gartner's endeavor to reward its shareholders in the form of share repurchases is appreciable. In 2021, 2020 and 2019, Gartner repurchased 7.3 million, 1.2 million and 1.4 million shares for $1.7 billion, $176.3 million and $199 million, respectively. Such moves vouch for a companys’ commitment to create value for its shareholders and underline its confidence in business. Also, these moves help raise investors’ optimism on the stock and drive the earnings per share.

Gartner has a large and diverse addressable market with low customer concentration that mitigates operating risks. Operating in an industry with low barriers to entry, IT has an integrated research and consulting team, designed to best serve its client needs. This boosts its competitive edge against its rivals.

Leveraging the breadth and depth of its intellectual capital, Gartner creates and distributes proprietary research content as widely as possible via published reports, interactive tools, facilitated peer networking, briefings, consulting and advisory services, and events.

Other Stocks to Consider

Investors interested in the broader Zacks Business Services sector can also consider stocks like Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report) and CRA International, Inc. (CRAI - Free Report) .

Avis Budget sports a Zacks Rank of 1 at present. CAR has an earnings growth rate of 108.4% for 2022.

Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.

Genpact carries a Zacks Rank #2 (Buy) at present. G has a long-term earnings growth expectation of 12.3%.

Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.

CRA International flaunts a Zacks Rank of 1, currently. CRAI has a long-term earnings growth expectation of 14.3%.

CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.
 

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