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Stamford, Connecticut-based Gartner, Inc. (IT) operates as a research and advisory company related to the computer hardware, software, communications, and related information technology industries. The company is valued at $31.8 billion by market cap.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and IT perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the information technology services industry. Gartner is a leading research and advisory company with a strong brand and high value services. Gartner's success is attributed to its quality research, operational efficiency, and strategic investments for sustained profitability.
Despite its notable strength, IT slipped 29.2% from its 52-week high of $584.01, achieved on Feb. 4. Over the past three months, IT stock declined 10%, underperforming the Dow Jones Industrials Average’s ($DOWI) 3.9% gains during the same time frame.
In the longer term, shares of IT dipped 14.6% on a YTD basis and fell 5.1% over the past 52 weeks, underperforming DOWI’s YTD gains of 1% and 11% returns over the last year.
To confirm the bearish trend, IT is trading below its 50-day moving average recently. The stock has been trading below its 200-day moving average since early March.
On May 6, IT shares closed up more than 1% after reporting its Q1 results. Its adjusted EPS of $2.98 beat Wall Street expectations of $2.72. The company’s revenue was $1.5 billion, matching Wall Street forecasts.
In the competitive arena of information technology services, Cognizant Technology Solutions Corporation (CTSH) has taken the lead over IT, showing resilience with a 4.6% uptick on a YTD basis and 21.4% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on IT’s prospects. The stock has a consensus “Moderate Buy” rating from the 10 analysts covering it, and the mean price target of $481.44 suggests a potential upside of 16.4% from current price levels.
