May. 3 at 12:58 AM
Heads up alert! Upcoming earnings on Tuesday, 5/6/2025 for
$IT Bearish (2.8)
In evaluating Gartner, Inc. (NYSE: IT), we observe a complex landscape influenced by recent market dynamics and company-specific factors.
The stock has underperformed in the past quarter, reflecting a 23% decline, which echoes concerns about its ability to maintain growth amidst a backdrop of slowing earnings in the technology sector.
Currently, Gartner's P/E ratio stands at approximately 26.9, compared to an industry average of around 22, suggesting that the stock may be overvalued relative to its peers.
The company's EPS growth has also shown signs of weakening, with analysts forecasting a decline in earnings for the upcoming quarter, which could further dampen investor sentiment.
Revenue forecasts indicate a potential stagnation, with Gartner's performance trailing behind its larger competitors, thereby raising questions about its competitive positioning in the face of government cuts affecting consulting contracts.
The recent insider stock sales totaling
$108 million also signal a lack of confidence among key stakeholders regarding the company's future prospects.
In terms of upcoming earnings reports, Gartner is set to release its Q1 2025 financial results on May 6, 2025.
Analysts are bracing for a decline in earnings, with expectations that the company will struggle to meet prior performance levels.
Historical performance shows that Gartner has often exceeded earnings expectations, but the current market sentiment is cautious, particularly with the ongoing geopolitical tensions and predictions of a downturn in major tech earnings.
The consensus among analysts reflects a bearish outlook, with many suggesting that the potential impact of government spending cuts on consulting contracts may weigh heavily on the results.
As the earnings date approaches, investor focus will likely remain on the company's ability to navigate these challenges and provide guidance for future growth, which is critical for restoring confidence in the stock.
- Funds were net sellers of
$IT during the previous reporting quarter.
- Top 5 funds with large holdings in
$IT:
* Generation Investment Management LLP
$558MM. CGMFundRank: 59%, Fund Website: www.generationim.com
* Polen Capital Management LLC
$437MM. CGMFundRank: 70%, Fund Website: www.polencapital.com
* Fayez Sarofim & Co
$164MM. CGMFundRank: 76%, Fund Website: www.sarofim.com
* Point72 Asset Management LP
$89MM. CGMFundRank: 94%, Fund Website: www.point72.com
* Adage Capital P
$35MM. CGMFundRank: 73%, Fund Website: www.adagecapital.com
- Last 10 days performance: 7%
- Last 30 days performance: 1%
- Last 90 days performance: -21%
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