U.S. Markets closed

IHS Markit's (INFO) OPIS and GLX Collaborate on LNG Indices

Zacks Equity Research

IHS Markit Ltd. INFO announced in the CERAWeek 2019 on Wednesday that its energy price-reporting arm — Oil Price Information Service (OPIS) — has inked an agreement with GLX for an end-to-end LNG-trading solution.

GLX is a leading online trading platform for liquefied natural gas (LNG). The collaboration is aimed at providing a price reference for the estimated $230-billion gas industry.

We observe that IHS Markit’s shares have gained 12.8% year to date compared with 16% rise of the industry it belongs to.

 

How Will IHS Markit Benefit?

The duo will develop industry led LNG indices at major LNG-trading points. They will also develop a daily LNG publication that uses global resources and reach of leading data and insight businesses including OPIS.

This will enable the OPIS to strengthen its market positionand provide a broader, customized as well asmore integrated LNG-trading service. Daniel Yergin, CERAWeek chairman and vice chairman of IHS Markit, stated, “The OPIS and IHS Markit alliance with GLX significantly increases our presence in the LNG space, and provides a timely response to the industry-led price indices, which are underpinned by physical trading data, an important component to gain the trust and support of the market.”

The move is expected to benefit the company’s Resources segment that includes Energy offerings like proprietary physical commodity pricing through OPIS. The segment fared well in the last reported quarter and generated revenues of $222.7 million, up 3% year over year.

Zacks Rank and Stocks to Consider

Currently, IHS Markit has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Omnicom OMC, Paychex PAYX and Automatic Data Processing ADP, each carrying a Zacks Rank #2 (Buy). Long-term expected EPS (three to five years) growth rate for Omnicom, Paychex and Automatic Data Processing is 4.7%, 8.8% and 12.8%, respectively.

Is Your Investment Advisor Fumbling Your Financial Future?

See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”

Click to get it free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
IHS Markit Ltd. (INFO) : Free Stock Analysis Report
 
Omnicom Group Inc. (OMC) : Free Stock Analysis Report
 
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
 
Paychex, Inc. (PAYX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.