With a market cap of $38.2 billion, Gartner, Inc. (IT) is a leading provider of research and advisory services. Headquartered in Stamford, Connecticut, Gartner specializes in delivering expert insights, strategic advice, and data-driven solutions to help businesses and government organizations navigate complex market dynamics and drive growth worldwide.
Shares of Gartner have lagged behind the broader market over the past 52 weeks. IT stock has gained 9.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 17%. However, on a YTD basis, the stock is up 3.8%, compared to SPX’s 1.3% gains.
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Zooming in further, IT has outperformed the Information Technology ETF Vanguard’s (VGT) 18.1% returns over the past 52 weeks.
On Feb. 4, IT stock saw a slight decline following its Q4 earnings release. Gartner reported adjusted EPS of $5.45, surpassing the estimate by 68%, while revenue of $1.72 billion slightly exceeded the $1.69 billion forecast. Adjusted EBITDA rose 8% to $417 million, and free cash flow jumped 59% to $311 million, aided by strong cost management and a one-time insurance gain.
For fiscal 2025, the company anticipates double-digit growth, workforce expansion, and a continued emphasis on conferences, strategic acquisitions, and share repurchases. While robust client engagement drives revenue momentum, macroeconomic uncertainties and technological shifts remain key risks.
For the current fiscal year, ending in December, analysts expect IT’s EPS to decline 11.3% year over year to $12.50. The company has consistently surpassed Wall Street's earnings estimates for the past four quarters.
Among the ten analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on five “Strong Buy,” four “Hold,” and one “Strong Sell” rating.
The configuration is slightly more bullish than two months ago, with four analysts suggesting a “Strong Buy.”
On Feb. 5, Baird analyst Jeffrey Meuler raised Gartner's price target to $605 from $579, maintaining an “Outperform” rating, citing optimism about accelerating CV and long-term growth.
The mean price target of $572 represents a modest 13.7% upside from IT’s current price levels, while the Street-high price target of $632 suggests upside potential of 25.6%.
On the date of publication, Rashmi Kumari 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.
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