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Gartner, Inc. (IT), founded in 1979 and headquartered in Stamford, Connecticut, is a leading global research and advisory firm dedicated to empowering businesses with insights and tools for growth and innovation. With a market cap of $38.8 billion, Gartner specializes in delivering expert analysis, strategic guidance, and actionable solutions across IT, finance, marketing, and other business functions, enabling organizations to optimize performance and navigate complex challenges in a rapidly evolving world.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” Gartner is a prominent player within this category. Its global reach and commitment to excellence position the company as a leader in providing critical research and advisory services, enabling businesses to optimize performance and achieve long-term success in a dynamic marketplace.
Gartner’s shares are currently trading 11% below their 52-week high of $559, reached on Nov. 11. The stock has declined 2% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 7.4% gains during the same time frame.
Over the longer term, IT rallied 10.3% on a YTD basis, trailing SPX’s return of 26.9%. Similarly, over the past 52 weeks, IT gained 11.9%, underperforming SPX’s impressive 28.2% growth during the same timeframe.
The stock has recently traded below its 50-day moving average, signaling a bearish trend. However, it has consistently remained above the 200-day moving average.
While recent underperformance in the broader sector stems from softer demand and macroeconomic uncertainties impacting client spending, Gartner's solid Q3 performance and improved 2024 outlook highlight its resilience and position the company for cautious growth in the future.
On Nov. 5, Gartner's shares rose 1.7% following a stronger-than-expected Q3 earnings report. The company posted revenues of $1.48 billion, up 5.4% year-over-year, slightly beating Wall Street's estimate. Its adjusted EPS declined 2.3% to $2.50, surpassing the consensus estimate of $2.45.
Gartner also provided an updated 2024 guidance with modest upward revisions across key metrics. Total revenues are now projected at $6.23 billion. Adjusted EBITDA was raised by $57 million to $1.52 billion, while adjusted EPS increased to $11.75.
IT’s rival, Forrester Research, Inc. (FORR), has had a rough ride. FORR's shares plummeted 41.6% in 2024 alone and 41.2% over the past 52 weeks.
Despite IT underperforming the broader sector, analysts retain a cautiously optimistic view of the stock's prospects. Of the ten analysts covering it, the consensus rating is “Moderate Buy,” and a mean price target of $546.55 indicates a potential upside of 9.9% from its current level.
