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Gartner, Inc. (IT - Free Report) has had an impressive run over the past year. The stock has gained 41.7% compared with the 19.5% rally of the industry it belongs to and the 26.1% rise of the Zacks S&P 500 composite.
IT reported better-than-expected second-quarter 2024 results. Adjusted earnings (excluding 28 cents from non-recurring items) per share of $3.22 beat the Zacks Consensus Estimate by 6.3% and increased 13% from the year-ago quarter. Revenues of $1.6 billion surpassed the consensus estimate marginally and improved 6.1% year over year.
Over the years, Gartner’s research reports have become indispensable tools for diverse companies across different sectors, strengthening its leading position in the market. IT makes informed decisions and provides insights using troves of data collected by advanced technologies. These insights are typically drawn from a critical fact base, collated from interactions with clients in more than 15,000 distinct organizations worldwide.
The company’s market strength is reinforced by the acquisition of CEB. The combination of Gartner’s analyst-driven, syndicated research and advisory services with CEB’s best practice and talent management insights across a range of business functions provides a comprehensive and differentiated suite of service portfolios across the globe.
Gartner’s unbiased, pragmatic and actionable insight can assist organizations to save thousands of dollars effectively. With rapid technological advancements and the massive proliferation of the Internet of Things, the distinction between physical and digital realms is fading. As a result, information technology has become vital for every organization to support higher productivity, improve performance metrics and protect the enterprise from cyber-security threats.
IT's efforts to reward its shareholders in the form of share repurchases are impressive. In 2023, 2022 and 2021, Gartner repurchased 3.9 million, 3.8 million and 7.3 million shares for $600 million, $1 billion and $1.7 billion, respectively. Such moves indicate the company’s commitment to create value for shareholders and underline its business confidence. Also, these actions help instill investors’ confidence in the stock and positively impact the bottom line.
Gartner faces tough competition from other players in the market, which has limited barriers to entry. There are multiple independent providers of information products and services, such as electronic and print media companies and consulting firms. Gartner must continuously invest in value drivers to retain a competitive edge and fend off competition. However, such actions escalate its operating costs and contract margins.
Image: Bigstock
CEB Acquisition Benefits Gartner (IT) Amid Tough Competition
Gartner, Inc. (IT - Free Report) has had an impressive run over the past year. The stock has gained 41.7% compared with the 19.5% rally of the industry it belongs to and the 26.1% rise of the Zacks S&P 500 composite.
IT reported better-than-expected second-quarter 2024 results. Adjusted earnings (excluding 28 cents from non-recurring items) per share of $3.22 beat the Zacks Consensus Estimate by 6.3% and increased 13% from the year-ago quarter. Revenues of $1.6 billion surpassed the consensus estimate marginally and improved 6.1% year over year.
Gartner, Inc. Revenue (TTM)
Gartner, Inc. revenue-ttm | Gartner, Inc. Quote
How is IT Faring?
Over the years, Gartner’s research reports have become indispensable tools for diverse companies across different sectors, strengthening its leading position in the market. IT makes informed decisions and provides insights using troves of data collected by advanced technologies. These insights are typically drawn from a critical fact base, collated from interactions with clients in more than 15,000 distinct organizations worldwide.
The company’s market strength is reinforced by the acquisition of CEB. The combination of Gartner’s analyst-driven, syndicated research and advisory services with CEB’s best practice and talent management insights across a range of business functions provides a comprehensive and differentiated suite of service portfolios across the globe.
Gartner’s unbiased, pragmatic and actionable insight can assist organizations to save thousands of dollars effectively. With rapid technological advancements and the massive proliferation of the Internet of Things, the distinction between physical and digital realms is fading. As a result, information technology has become vital for every organization to support higher productivity, improve performance metrics and protect the enterprise from cyber-security threats.
IT's efforts to reward its shareholders in the form of share repurchases are impressive. In 2023, 2022 and 2021, Gartner repurchased 3.9 million, 3.8 million and 7.3 million shares for $600 million, $1 billion and $1.7 billion, respectively. Such moves indicate the company’s commitment to create value for shareholders and underline its business confidence. Also, these actions help instill investors’ confidence in the stock and positively impact the bottom line.
Gartner faces tough competition from other players in the market, which has limited barriers to entry. There are multiple independent providers of information products and services, such as electronic and print media companies and consulting firms. Gartner must continuously invest in value drivers to retain a competitive edge and fend off competition. However, such actions escalate its operating costs and contract margins.
Zacks Rank & Stocks to Consider
Gartner currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Genpact (G - Free Report) and Jamf (JAMF - Free Report) .
Genpact has a Zacks Rank of 2 (Buy) at present. EVTC has a long-term earnings growth expectation of 8.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
G delivered a trailing four-quarter earnings surprise of 6.9%, on average.
Jamf currently carries a Zacks Rank of 2. The company has a long-term earnings growth expectation of 57%.
JAMF delivered a trailing four-quarter earnings surprise of 15.7%, on average.