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S&P Global Inc. (SPGI) is a leading financial information and analytics provider with a market cap of $160.6 billion. The New York-based company delivers credit ratings, benchmarks, and data through its segments, including Market Intelligence, Ratings, Commodity Insights, Mobility, and Dow Jones Indices.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and S&P Global fits this criterion perfectly. S&P Global stands out for its extensive influence in setting industry standards and providing critical data and analytics that drive investment and financial decision-making across diverse markets.
Despite a slight drop from its 52-week high of $514, reached on Aug. 30, S&P Global's shares have risen 21.7% over the past three months, outpacing the broader Dow Jones Industrials Average's ($DOWI) 9.1 gains during the same period.
Longer term, SPGI is up 16.5% on a YTD basis, surpassing the DOWI's 10.3% gains. Moreover, shares of the financial information company have surged 30.8% over the past 52 weeks, compared to DOWI’s 19.3% returns over the same time frame.
SPGI has shown a bullish trend, consistently trading above its 200-day moving average since November last year, and has also remained mostly above its 50-day moving average during the period despite a few fluctuations.
S&P Global has outperformed due to strong growth in its Ratings segment, strong performance in Indices, strategic acquisitions enhancing its capabilities, and a substantial increase in debt issuance and asset-linked fees driving overall financial performance.
Moreover, the company raised its full-year profit forecast and reported a 30% increase in Q2 adjusted earnings to $4.04 per share on Jul. 30, driven by strong demand for its data and analytics products. Despite this, shares of SPGI declined marginally the same day due to market concerns about potential interest rate hikes and their impact on economic growth.
Also, SPGI has significantly outperformed its rival, MSCI Inc. (MSCI), boasting double-digit returns on a YTD basis and over the past 52 weeks, compared to MSCI's gains of 2.6% and 7.8%, respectively.
Analysts are optimistic about the stock's prospects, given its impressive gains over the past year. With a consensus "Strong Buy" rating from 19 analysts, the mean price target of $549.41 indicates a premium of only 7% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
