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Gartner (IT) Gains But Lags Market: What You Should Know

·3 min read

Gartner (IT) closed at $298.56 in the latest trading session, marking a +0.61% move from the prior day. This change lagged the S&P 500's 0.66% gain on the day. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq lost 0.02%.

Heading into today, shares of the technology information and analysis company had lost 1.22% over the past month, outpacing the Business Services sector's loss of 10.23% and the S&P 500's loss of 3.79% in that time.

Investors will be hoping for strength from Gartner as it approaches its next earnings release. In that report, analysts expect Gartner to post earnings of $1.84 per share. This would mark a year-over-year decline of 9.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.29 billion, up 11.31% from the year-ago period.

IT's full-year Zacks Consensus Estimates are calling for earnings of $9.08 per share and revenue of $5.38 billion. These results would represent year-over-year changes of -1.52% and +13.67%, respectively.

Any recent changes to analyst estimates for Gartner should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Gartner is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Gartner currently has a Forward P/E ratio of 32.68. This represents a premium compared to its industry's average Forward P/E of 20.81.

Also, we should mention that IT has a PEG ratio of 2.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. IT's industry had an average PEG ratio of 1.41 as of yesterday's close.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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