Gartner Inc (IT, Financial), a leading player in the software industry, has seen a significant surge in its stock price over the past quarter. The company's stock price has risen by 18.71% over the past week and 14.81% over the past three months, reaching a current price of $386.71. With a market cap of $30.14 billion, Gartner's recent performance has caught the attention of investors and market analysts alike.
Understanding Gartner's Stock Valuation
According to the GF Value, defined by GuruFocus.com, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, Gartner's stock is currently fairly valued. The GF Value stands at $361.81, compared to $345.47 three months ago, indicating a steady increase in the stock's intrinsic value. This suggests that the recent surge in Gartner's stock price is not merely a market fluctuation but is backed by the company's strong fundamentals and growth prospects.
Introduction to Gartner Inc
Based in Stamford, Connecticut, Gartner Inc is a renowned name in the software industry. The company provides independent research and analysis on information technology and related industries. Its research is delivered to clients' desktops in the form of reports, briefings, and updates. Gartner's typical 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.
Profitability Analysis
Gartner's profitability is impressive, with a Profitability Rank of 9/10. The company's Operating Margin stands at 19.99%, better than 88.84% of companies in the industry. Its ROE is a staggering 428.11%, outperforming 98.8% of companies, while its ROA and ROIC are 13.15% and 12.86% respectively. Gartner has maintained consistent profitability over the past 10 years, better than 99.96% of companies, demonstrating its strong financial health and stability.
Growth Prospects
Gartner's growth prospects are equally promising, with a Growth Rank of 9/10. The company's 3-year and 5-year revenue growth rates per share are 13.10% and 11.20% respectively, outperforming a majority of companies in the industry. Its future total revenue growth rate estimate stands at 8.43%. Furthermore, Gartner's 3-year and 5-year EPS without NRI growth rates are 55.60% and 56.80% respectively, indicating strong earnings growth potential.
Top Holders of Gartner's Stock
The top three holders of Gartner's stock are Ron Baron (Trades, Portfolio), who holds a 5.99% share, Al Gore (Trades, Portfolio), who holds a 2.65% share, and Wallace Weitz (Trades, Portfolio), who holds a 0.18% share. Their significant investments in Gartner further validate the company's strong performance and growth prospects.
Competitive Landscape
Gartner faces competition from several companies in the software industry. Its main competitors include CDW Corp (CDW, Financial) with a market cap of $28.06 billion, Fidelity National Information Services Inc (FIS, Financial) with a market cap of $30.78 billion, and Broadridge Financial Solutions Inc (BR, Financial) with a market cap of $20.84 billion. Despite the competition, Gartner's strong fundamentals and growth potential make it a compelling choice for investors.
Conclusion
In conclusion, Gartner Inc's stock has shown impressive performance over the past quarter, backed by the company's strong profitability and growth prospects. The company's fair valuation, consistent profitability, and robust growth make it a promising investment. As Gartner continues to innovate and expand its offerings, it is well-positioned to maintain its upward trajectory in the market.
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.
