S&P Global is the IBD Stock Of The Day after hiking 2025 guidance above analyst views. S&P Global stock, a dividend stock with a growing payout, is flirting with a pair of buy points.
For Q4, the provider of credit ratings and market research firm continues to deliver profitable growth. Its last sales decline came in Q1 2019, before the Covid pandemic. On Tuesday, S&P Global beat Q4 earnings and revenue estimates.
Eleven analysts hiked price targets on S&P Global stock after the report, FactSet shows. No one cut.
Investors are favoring defensive plays, including gold and dividend stocks, in an uncertain market. Dividend growers like S&P Global generally offer steady, profitable growth.
S&P Global Stock Tests Buy Point
Shares of S&P Global gapped up 4.9% in big volume on the earnings beat Tuesday, jumping above a 533.29 buy point from a flat base, according to MarketSurge charts. S&P Global stock dipped below the entry in intraday stock market action on Wednesday.
However, S&P Global held above a 528 early buy point, also cleared on Tuesday.
The relative strength line for SPGI stock is improving but remains below the consolidation peak as well. It's a bullish sign if the RS line, the blue line in the chart shown, hits a new high as a stock tries to break out. A rising RS line shows a stock's outperformance vs. the S&P 500 index.
On a weekly chart, S&P Global's RS line has moved sideways for several years, drifting lower from a 2020 peak.
An 81 RS Rating means that the commercial services stock has outperformed 81% of all stocks in IBD's database over the past year.
S&P Global Earnings And Outlook
The IBD Stock Checkup tool shows that S&P Global stock carries a Composite Rating of 87 out of a best-possible 99. IBD's Composite Rating rolls various fundamental and technical metrics into one easy-to-use score.
The 87 Composite score makes S&P Global the No. 2 stock in the commercial services-market research group, behind Moody's and ahead of Thomson Reuters and Gartner.
S&P Global holds an EPS Rating of 89 out of a best-possible 99. Among the factors holding back that score: earnings growth slowed from 30% to 21% to 20% over the last three quarters.
In the latest Q4, the company reported a 20% earnings gain per share on 14% sales growth. Both beat estimates. Margins expanded. For the full year, S&P Global posted an almost 25% earnings jump as sales swelled almost 14%. The company's 2025 guidance also came in above views.
Analysts now expect a 10% earnings increase in 2025 and a further 12% rise next year. They see revenue growth slowing to the mid-to-high single digits both years.
Dividend Stock With Steady And Growing Payout
The company says it has paid a dividend each year since 1937. It is one of a few S&P 500 companies to have increased its dividend annually for more than 50 years.
The latest 5.5% dividend hike for S&P Global stock came at the end of January. However, this steady dividend stock still yields a measly 0.7%.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
