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Gartner (IT) Gains 40.7% in the Past 6 Months: Here's How

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Gartner, Inc. (IT - Free Report) shares have had an impressive run over the past six months. The stock gained 40.7% compared with 8.4% rise of the industry it belongs to.

Reasons for the Upside

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 indicate the company’s commitment to create value for shareholders and underline its confidence in business. Also, these moves help instill investors’ confidence in the stock and positively impact earnings per share.

Gartner research reports have become indispensable tools for diverse companies across different sectors, strengthening its leading position in the market. Using advanced technologies to collect and analyze troves of data, IT draws on unique data assets and deep domain expertise to provide key insights and decision-support solutions for an informed decision-making process. These insights are typically drawn from a critical fact base, collated from interactions with clients in more than 15,000 distinct organizations worldwide.

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The company has a large and diverse addressable market with low customer concentration that mitigates operating risks. Operating in an industry with low barriers to entry, Gartner has an integrated research and consulting team designed to best serve client needs. This enables it to have a competitive advantage against its rivals. Leveraging the breadth and depth of its intellectual capital, Gartner creates and distributes proprietary research content as broadly as possible.

Favorable Estimates Revision

Driven by the above tailwinds, the Zacks Consensus Estimate for 2023 earnings has moved up 1.9% to $9.53 per share in the past 90 days.

Zacks Rank and Stocks to Consider

Gartner currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and DocuSign, Inc. (DOCU - Free Report) .

Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%.

Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.

DocuSign is currently Zacks #1 Ranked. DOCU has a long-term earnings growth expectation of 13.7%.

DOCU delivered a trailing four-quarter earnings surprise of 6.6%, on average.



 


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