Gartner (IT) Stock Hits 52-Week High: What's Driving It?
Gartner (IT) stock has been benefiting from consecutive better-than-expected top- and bottom-line performances and encouraging yearly guidance.
Shares of Gartner Inc. IT scaled a 52-week high of $318.30 in the trading session on Sep 9, before closing a tad lower at $315.87.
The company’s shares have charted a solid trajectory, surging 97.1% year to date compared with the 33.4% growth of the industry and a 21.4% rise of the Zacks S&P 500 composite.
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Notably, Gartner witnessed a 7.5% increase in its share price since it posted second-quarter 2021 results.
Let’s find out what’s supporting the uptick.
Upbeat 2021 Guidance
Gartner raised its full-year 2021 guidance. The company now expects total revenues to be $4.57 billion compared with the prior guidance of $4.51 billion. The current Zacks Consensus Estimate of $4.62 billion is higher than the updated guidance.
Adjusted earnings per share (EPS) is now projected at $7.60 compared with the prior guidance of $6.25. The current Zacks Consensus Estimate of $7.83 is higher than the updated guidance.
Adjusted EBITDA is now expected to be $1.16 billion compared with the prior guidance of $1 billion. Free cash flow is now anticipated to be $1.13 billion compared with the prior guidance of $850 million.
Consecutive Earnings Beat
Gartner came up with better-than-expected earnings and revenue performance in the last four quarters. The company’s bottom line continued to benefit from improvement in its operational efficiency. Strength across the Research and Consulting segments boosted the top line.
Diverse Addressable Market
Gartner has a large and diverse addressable market with low customer concentration, which helps in mitigating operating risks. Operating in an industry with low barriers to entry, Gartner has an integrated research and consulting team designed to serve clients’ needs effectively. This enables it to have a competitive advantage over its rivals. Leveraging the breadth and depth of its intellectual capital, Gartner creates and distributes proprietary research content as broadly as possible via published reports, interactive tools, facilitated peer networking, briefings, consulting and advisory services as well as events. These are helping the company to generate a steady revenue stream.
Zacks Rank and Other Stocks to Consider
Gartner currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected EPS (three to five years) growth rate for Equifax, BGSF and Avis Budget is pegged at 15.2%, 20% and 57.2%, respectively.
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