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S&P Global Inc. (SPGI), headquartered in New York, provides financial information services to its clients. Valued at $170.7 billion by market cap, the company provides credit ratings, benchmarks, analytics, and workflow solutions in the global capital, commodity, and automotive markets.
Shares of this leading credit rating agency have underperformed the broader market over the past year. SPGI has gained 14.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 19%. However, in 2025, SPGI stock is up 13%, surpassing the SPX’s 10% rise on a YTD basis.
Narrowing the focus, SPGI has lagged behind the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). The exchange-traded fund has gained about 44.7% over the past year. Moreover, the ETF’s 22.1% gains on a YTD basis outshine the stock’s returns over the same time frame.
SPGI's underperformance is attributed to modest auto demand in July, driven by concerns over affordability. Sales are expected to improve slightly as the market anticipates a second wave of pull-ahead demand in 2025, with a focus on battery electric vehicles ahead of the expiration of federal EV incentives on September 30th. This will help boost overall new vehicle volumes, but to a lesser extent than seen earlier this year.
On Jul. 31, SPGI shares closed up more than 4% after reporting its Q2 results. Its adjusted EPS increased 9.7% year over year to $4.43. The company’s revenue stood at $3.8 billion, up 5.8% year over year.
For the current fiscal year, ending in December, analysts expect SPGI’s EPS to grow 9.4% to $17.17 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering SPGI stock, the consensus is a “Strong Buy.” That’s based on 19 “Strong Buy” ratings, three “Moderate Buys,” and one “Hold.”
This configuration is less bullish than a month ago, with 20 analysts suggesting a “Strong Buy.”
On Aug. 5, Sean Kennedy from Mizuho Financial Group, Inc. (MFG) reiterated a “Buy” rating on SPGI with a price target of $637, implying a potential upside of 13.2% from current levels.
The mean price target of $619.15 represents a 10.1% premium to SPGI’s current price levels. The Street-high price target of $660 suggests an upside potential of 17.3%.
On the date of publication, Neha Panjwani 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.
