Stock of the Day

January 20, 2021

Gartner (IT)

$487.44
-$15.72 (-3.1%)
Market Cap: $38.65B

About Gartner

Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers executives and teams in an organization the opportunity to learn, share, and network. The Consulting segment offers market-leading research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.

Gartner Bull Case

Here are some ways that investors could benefit from investing in Gartner, Inc.:

  • Gartner, Inc. has demonstrated strong financial performance with a return on equity of 136.32%, indicating effective management and profitability relative to shareholder equity.
  • The company reported a net margin of 20.00%, showcasing its ability to convert revenue into profit efficiently, which is attractive for potential investors.
  • Recent analyst upgrades, including a price target increase to $605.00, suggest positive market sentiment and potential for stock price appreciation.
  • Gartner's quarterly revenue growth of 8.1% compared to the same quarter last year indicates a robust demand for its services, which could lead to sustained profitability.
  • The current stock price is approximately $523.54, which may present a buying opportunity for investors looking to enter at a favorable valuation.

Gartner Bear Case

Investors should be bearish about investing in Gartner, Inc. for these reasons:

  • Despite positive growth, one analyst has issued a sell rating, indicating some skepticism about the stock's future performance.
  • Wells Fargo & Company recently reduced their target price on Gartner from $470.00 to $460.00, reflecting a cautious outlook on the stock's potential.
  • Insider selling activity, with executives selling shares valued at nearly $3 million in the last 90 days, may signal a lack of confidence in the stock's near-term prospects.
  • With 91.51% of the stock owned by institutional investors, there may be limited room for retail investors to influence the stock price.
  • The consensus rating for Gartner is "Hold," suggesting that while the stock is not expected to decline significantly, it may not present strong growth opportunities either.

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