Gartner (IT) Benefits From Diversified Addressable Market
Gartner, Inc. IT provides analysis known for its quality, independence and objectivity. Its research reports, which have become essential for companies in various sectors, solidifies its top position in the market.
Gartner has gained 19.1% in the past year compared with the Consulting Market industry’s 12.7% growth.
Factors That Bode Well
Over time, Gartner's research reports have been firmly established as essential resources for a wide range of companies. Utilizing advanced technology, Gartner provides vital insights and decision-making solutions drawn from extensive data sources. The acquisition of CEB further enhances Gartner's market presence, resulting in a well-rounded service portfolio. Renowned for its top-notch, impartial analysis, Gartner assists organizations in cost-saving and effectively navigating the ever-changing IT landscape, presenting a compelling value proposition.
Gartner enjoys a vast, diversified market with low customer concentration, which minimizes operational risks. In an industry with low entry barriers, Gartner's integrated research and consulting team gives it a competitive edge. Leveraging its rich intellectual resources, Gartner widely distributes exclusive research content via reports, tools, networking, consulting, and events, ensuring a steadily improving revenue stream. Due to the adept execution of operational plans, Gartner has sustained double-digit growth in key metrics for over a decade.
Gartner, Inc. Price
Gartner, Inc. price | Gartner, Inc. Quote
Gartner's commitment to rewarding its shareholders through share repurchases is commendable. In 2022, 2021, and 2020, Gartner bought back 3.8 million, 7.3 million, and 1.2 million shares at a cost of $1 billion, $1.7 billion, and $176.3 million, respectively. These actions demonstrate the company's dedication to enhancing shareholder value and showcasing the strong belief in its business. Additionally, such initiatives bolster investors’ confidence in the stock and have a favorable impact on earnings per share.
Gartner's current ratio at the end of second-quarter 2023 was pegged at 0.87, higher than the current ratio of 0.62 reported at the end of the prior-year quarter. This indicates that the company should not have problems meeting its short-term debt obligations.
Threats to Gartner
Gartner is exposed to foreign exchange risk due to its global operations, with fluctuations in the U.S. dollar impacting financial results against currencies like the British pound, euro, Canadian dollar, Australian dollar, and Japanese yen.
Consulting firms, including Gartner, face rising talent costs in a competitive labor market, which is heavily reliant on foreign talent. While automation and AI present opportunities, they also introduce uncertainties as clients explore new performance-enhancing methods.
IT currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the Business Services sector are mentioned below.
DocuSign DOCU has beaten the Zacks Consensus Estimate in all the four trailing quarters and has an earning surprise of 25.6%. The Zacks Consensus Estimate for current-year revenues indicates an 8.1% increase from the year-ago reported figure. The consensus mark for earnings is pegged at $2.52 per share, indicating 24.1% year-over-year growth. DOCU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CRA International CRAI has beaten the Zacks Consensus Estimate in two of the four trailing quarters and missed on two instances, with an earning surprise of 5.1%. The Zacks Consensus Estimate for revenues indicates a 6.6% increase from the year-ago reported figure. The consensus mark for earnings is pegged at $5.49 per share, indicating a 7.6% year-over-year decline. CRAI has a Zacks Rank #2 (Buy) at present.
ABM Industries ABM has beaten the Zacks Consensus Estimate in all the four trailing quarters and has an earning surprise of 2.64%. The Zacks Consensus Estimate for revenues indicates a 3.5% increase from the year-ago reported figure. The consensus mark for earnings is pegged at $3.51 per share, indicating a 4.1% year-over-year decline. ABM has a Zacks Rank of 2 at present.
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