Valued at $162.2 billion by market cap, New York-based S&P Global Inc. (SPGI) provides governments, businesses, and individuals with market data, expertise, and technology solutions for confident decision-making. Widely sought after by many of the world’s leading organizations, S&P Global offers credit ratings, competitive benchmarking, and data-driven analytics in global securities markets.
Companies worth $10 billion or more are generally described as "large-cap stocks," and S&P Global fits this bill perfectly. The company operates 70+ offices in 35 countries and serves customers in 150+ countries across the Americas, Indo-Pacific, and the EMEA region.
Despite its strengths, the stock has dipped around 2% from its all-time high of $533.29 achieved on Oct. 15. SPGI stock has gained 1.9% over the past three months, lagging behind the Financial Select Sector SPDR Fund’s (XLF) surge of 11.1% over the same time frame.
Over the longer term, S&P Global has gained 18.7% on a YTD basis and 23.9% over the past 52 weeks, lagging behind the XLF’s surge of 35.2% in 2024 and 40.5% over the past year.
To confirm the bullish trend, SPGI has consistently traded above its 200-day moving average over the past year and above its 50-day moving average since early June with some fluctuations in the past two months.
Despite reporting better-than-expect results, S&P Global’s stock prices dipped around 3.5% after the release of its Q3 earnings on Oct. 24. Driven by the revenue growth from Indices and Ratings segments, the company’s overall revenues grew by an impressive 15.9% year-over-year to approximately $3.6 billion. However, its highest revenue-contributing segment: Market Intelligence recorded comparatively modest revenue growth of 5.7% compared to the year-ago quarter to roughly $1.2 billion, which could have raised concern for some investors.
Meanwhile, the company has reported a massive growth in profitability, with adjusted operating margin expanding 180 basis points compared to the year-ago quarter to 48.8% and adjusted operating profits growing 20.3% year-over-year to $1.7 billion. Furthermore, the company’s adjusted EPS of $3.89 surpassed analysts’ consensus estimates by a notable 6.9%.
S&P has underperformed its competitor Moody's Corporation’s (MCO) 27.4% gains on a YTD basis and 34.1% returns over the past year.
Nevertheless, the company has a consensus “Strong Buy” rating among the 20 analysts covering the stock. As of writing, S&P Global is trading below the mean price target of $585.18.
On the date of publication, Aditya Sarawgi 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. More news from Barchart- 3 Energy ETFs to Invest in the Data Center Power Surge
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