What's Driving Gartner Inc's Surprising -0.94% Stock Rally?

Gartner Inc (IT, Financial), a leading player in the software industry, has seen a mixed performance in the stock market recently. With a current market cap of $30.35 billion and a stock price of $385, the company has experienced a 2.48% gain over the past week. However, the past three months have seen a slight dip of -0.94%. According to the GF Value, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, Gartner Inc is fairly valued at $361.63. This is a slight increase from its past GF Value of $345.47, indicating a stable valuation for the company.

Company Overview: Gartner Inc

Headquartered in Stamford, Connecticut, Gartner Inc is a renowned name in the software industry. The company is known for providing independent research and analysis on information technology and other related technology industries. Gartner's research is delivered to clients' desktops in the form of reports, briefings, and updates. The company's primary clients include chief information officers and other business executives who help plan companies' IT budgets. In addition to research, Gartner also offers consulting services and hosts numerous IT conferences worldwide. 1720443956115861504.png

Profitability Analysis

Gartner Inc boasts a high Profitability Rank of 9/10, indicating a strong level of profitability. The company's Operating Margin stands at 19.99%, which is better than 88.84% of the companies in the industry. Furthermore, Gartner's ROE is an impressive 428.11%, outperforming 98.8% of the companies. The company's ROA and ROIC are 13.15% and 12.86% respectively, both better than the majority of companies in the industry. Gartner has also maintained consistent profitability over the past 10 years, which is better than 99.96% of the companies. 1720443976827334656.png

Growth Prospects

With a Growth Rank of 9/10, Gartner Inc shows strong growth in terms of revenue and profitability. The company's 3-year and 5-year Revenue Growth Rate per Share are 13.10% and 11.20% respectively, outperforming more than 60% of the companies in the industry. The future total revenue growth rate estimate stands at 8.43%, which is better than 35.38% of the companies. Gartner's 3-year and 5-year EPS without NRI growth rates are 55.60% and 56.80% respectively, which are better than the majority of companies in the industry. 1720443995378741248.png

Major Stock Holders

The top three holders of Gartner Inc's stock are Ron Baron (Trades, Portfolio) with a 5.99% share, Al Gore (Trades, Portfolio) with a 2.65% share, and Wallace Weitz (Trades, Portfolio) with a 0.18% share.

Competitive Landscape

Gartner Inc faces competition from several companies in the software industry. CDW Corp (CDW, Financial) with a market cap of $28.1 billion, Fidelity National Information Services Inc (FIS, Financial) with a market cap of $31.03 billion, and Broadridge Financial Solutions Inc (BR, Financial) with a market cap of $21.32 billion are some of the main competitors.

Conclusion

In conclusion, Gartner Inc's stock performance, profitability, and growth indicate a strong position in the market relative to its competitors. Despite a slight dip in the past three months, the company's consistent profitability and strong growth prospects make it a potential option for value investors.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.