Back to top

Image: Bigstock

Here's How Much You'd Have If You Invested $1000 in Gartner a Decade Ago

Read MoreHide Full Article

For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Gartner (IT - Free Report) ten years ago? It may not have been easy to hold on to IT for all that time, but if you did, how much would your investment be worth today?

Gartner's Business In-Depth

With that in mind, let's take a look at Gartner's main business drivers.

Headquartered in Stamford, Connecticut, Gartner, Inc. is reportedly the worlds leading information technology research and advisory firm. The company offers rich domain expertise and technology-related insight necessary for informed decision-making process.

Over the years, Gartners comprehensive services portfolio has enabled customers across the spectrum to research, analyze and interpret the business with greater precision, efficiency and discipline.

The companys long-term strategy is to increase business volume and penetration with most important clients, recognizing relationships with the highest sales potential and expanding them through offering strategically relevant research and advice.

Gartners diversified business model utilizes depth and breadth of intellectual capital to create and distribute research content as broadly as possible through published reports, interactive tools, briefings, consulting, advisory services and conferences.

The company operates through three business segments: Research, Conference and Consulting.

Research segment: This segment is the fundamental building block for all Gartner services and combines proprietary research methodologies with extensive industry and academic relationships to offer in-depth analysis in the form of reports, briefings, updates and related tools primarily through a subscription-based, digital media service. Research segment generates the lions share of the total revenue, contributing 88% of 2021 GAAP revenues.

Consulting segment: This segment offers fact-based consulting services for optimal business performance through its unique research insight, benchmarking data, problem-solving methodologies and hands-on experience. These services are primarily provided to CIOs and other professionals responsible for IT applications, enterprise architecture, go-to-market strategies, infrastructure and operations, program and portfolio management, and sourcing and vendor relationships. Consulting segment accounted for 9% of 2021 GAAP revenues.

The Conferences segment accounted for 3% of 2021 GAAP revenues. The Events segment has been renamed as Conferences segment as part of business operations alignment.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Gartner a decade ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in November 2012 would be worth $7,418.50, or a gain of 641.85%, as of November 21, 2022, and this return excludes dividends but includes price increases.

In comparison, the S&P 500 gained 191.59% and the price of gold went up -2.75% over the same time frame.

Analysts are anticipating more upside for IT.

Gartner offers timely, thought-provoking and comprehensive analysis that is known for its high quality, independence and objectivity. It's research reports have become indispensable tools for various companies across different sectors, strengthening its leading position in the market. The company has a large and diverse addressable market with low customer concentration that mitigates operating risks. Consistency in rewarding shareholders through share buybacks boost investor confidence and positively the company's bottom line. On the flip side, continuous investments to retain a competitive edge and fend off competition has increased the company's expenses and contracted margin. Foreign currency exchange rate fluctuations and stiff competition act as major concerns. Partly due to these headwinds, the stock has declined in the past year.

The stock has jumped 16.55% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2022; the consensus estimate has moved up as well.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Gartner, Inc. (IT) - free report >>

Published in