Stock of the Day

October 7, 2019

S&P Global (SPGI)

$533.05
-$2.38 (-0.4%)
Market Cap: $164.81B

About S&P Global

S&P Global, Inc. engages in the provision of transparent and independent ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. It operates through the following segments: Market Intelligence, Ratings, Commodity Insights, Mobility, Indices, and Engineering Solutions. The Market Intelligence segment provides multi-asset-class data and analytics integrated with purpose-built workflow solutions. The Ratings segment is involved in credit ratings, research, and analytics, offering investors and other market participants information, ratings, and benchmarks. The Commodity Insights segment focuses on information and benchmark prices for the commodity and energy markets. The Mobility segment offers solutions serving the full automotive value chain including vehicle manufacturers, automotive suppliers, mobility service providers, retailers, consumers, and finance and insurance companies. The Engineering Solutions segment engages in advanced knowledge discovery technologies, research tools, and software-based engineering decision engines to advance innovation, maximize productivity, improve quality, and reduce risk. The company was founded by James H. McGraw and John A. Hill in 1917 and is headquartered in New York, NY.

S&P Global Bull Case

Here are some ways that investors could benefit from investing in S&P Global Inc.:

  • The current stock price is $542.61, reflecting strong market interest and a solid valuation in the business services sector.
  • S&P Global Inc. reported an impressive earnings per share (EPS) of $3.77, exceeding analysts' expectations, which indicates robust financial performance and potential for future growth.
  • The company has a market capitalization of $167.02 billion, suggesting it is a well-established player in the market, which can provide stability for investors.
  • Recent dividend increase to $0.96 per share, up from $0.91, demonstrates the company's commitment to returning value to shareholders, with a current yield of 0.71%.
  • Analysts have a strong consensus rating of "Moderate Buy" with an average target price of $590.23, indicating positive sentiment and potential for price appreciation.

S&P Global Bear Case

Investors should be bearish about investing in S&P Global Inc. for these reasons:

  • The stock has a high price-to-earnings (P/E) ratio of 43.94, which may suggest that it is overvalued compared to its earnings, potentially limiting upside for new investors.
  • Despite strong earnings, the company's beta of 1.20 indicates higher volatility compared to the market, which could lead to greater risk for investors during market fluctuations.
  • The debt-to-equity ratio of 0.34, while relatively low, still indicates that the company uses some leverage, which could pose risks if market conditions change.
  • Recent trading volume of 1,745,125 shares was above the average, which may indicate increased selling pressure or volatility in the stock price.
  • Institutional ownership is high at 87.17%, which can lead to less price stability as large investors may sell off shares quickly in response to market changes.

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