S&P Global Performs Steadily Amid Broader Market Rally
Financial Services Giant Falls Behind Major Indices
S&P Global Inc. (SPGI), headquartered in New York, is a prominent financial information service provider with a market capitalization of $156.2 billion. The company offers a range of services including credit ratings, benchmarks, analytics, and workflow solutions across various global markets, such as capital, commodities, and automotive sectors.
Stock Performance Compared to the Market
Over the past year, SPGI’s stock has not kept pace with the wider market. The stock increased by 23.3%, while the S&P 500 Index ($SPX) saw a more substantial rise of nearly 30.6%. In the current year to date, SPGI’s stock has gained 14.2%, significantly lagging behind SPX’s increase of 23.6%.
ETF Comparison Highlights Underperformance
When focusing on specific funds, SPGI has notably trailed the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI), which reported a remarkable gain of 56.7% over the past year. The ETF’s year-to-date gains of 38.3% also overshadow SPGI’s performance.
Q3 Earnings Report and Market Reactions
After releasing its Q3 earnings on October 24, SPGI’s shares dropped by 3.5%. However, the company reported an adjusted EPS of $3.89 and revenue of $3.6 billion, both surpassing Wall Street’s expectations. For the fiscal year ending in December, analysts predict SPGI’s EPS will grow by 21%, reaching $15.24 on a diluted basis. Historically, the company has had a mixed record with earnings surprises, beating estimates in three out of its last four quarters.
Analyst Ratings and Market Outlook
Among 20 analysts tracking SPGI, the consensus rating is a “Strong Buy”, with 17 “Strong Buy” ratings, two “Moderate Buys,” and one “Hold.” This outlook is more positive than it was two months ago when only 16 analysts recommended a “Strong Buy.”
Price Target Adjustments After Earnings
On October 28, Stifel Financial Corp. (SF) raised its price target for S&P Global to $560 from $540, maintaining a “Buy” rating. The Q3 performance was largely attributed to strong debt issuance volumes in the Ratings segment, with positive contributions from the Indices segment. Stifel also updated its estimates for Q4 and 2025 accordingly.
The average price target for SPGI is $583.41, indicating a potential upside of 16% from current levels. Additionally, a Street-high price target of $620 suggests a notable upside potential of 23.3%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are provided solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
