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New York City-based S&P Global Inc. (SPGI) is a leading financial information and analytics company renowned for its comprehensive range of credit ratings, benchmarks, and data analysis. With a market cap of $134.17 billion, S&P Global stands as one of the most influential players in the financial services industry. Competing vigorously with other major financial information providers, S&P Global's main rivals include Moody's Corporation (MCO), which dominates the credit rating and analytics market.
Companies worth $10 billion or more are generally considered "large-cap" stocks and S&P Global exemplifies this category, signifying its substantial size, stability, and dominance in the financial services industry. The company has solidified its market leadership and driven growth through comprehensive credit ratings, robust data analytics, and strategic acquisitions, ensuring its resilience in a competitive and evolving financial landscape. By continually advancing its technology and expanding its range of services, S&P Global remains a critical player in the global financial ecosystem.
Shares of S&P Global have dropped 7% from their 52-week high of $461.16, reached on Feb. 07. Over the past three months, SPGI's shares have gained marginally, significantly underperforming the broader Nasdaq Composite ($NASX), which gained 8.3% during the same period.
Longer term, SPGI has declined 2.7% on a YTD basis, while the shares are now holding onto a gain of 11.7% over the past 52 weeks. In comparison, the Nasdaq is up 15.5% in 2024 and 30.8% over the past year.
However, SPGI has been trading above its 200-day moving average since early November and its 50-day moving average since late May.
SPGI reported its Q1 results on April 25. The stock saw a marginal gain on the announcement day. The company's earnings were $991 million, equivalent to $3.16 per share. Adjusted earnings, excluding amortization costs and non-recurring expenses, stood at $4.01 per share, surpassing Wall Street estimates of $3.68 per share. It also exceeded revenue expectations, posting $3.49 billion for the period, compared to the forecasted $3.39 billion. S&P Global expects full-year earnings to range between $13.85 and $14.10 per share.
To emphasize the stock’s overall underperformance, rival MCO has outperformed SPGI. MCO stock is up 20.2% over the past 52 weeks.
Despite the underperformance, analysts are highly optimistic about SPGI's recovery prospects. The stock has a consensus rating of "Strong Buy" from 19 analysts in coverage. The mean price target of $491.65 reflects a 14.7% premium over current levels.
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.
