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Gartner Focuses on Holistic Growth to Strengthen Foothold

On Jul 18, we initiated a research report on information technology research and advisory firm, Gartner, Inc. IT.

Over the years, Gartner research reports have become indispensable tools for diverse companies across different sectors, strengthening its leading position in the market. Using advanced technologies to collect and analyze troves of data, Gartner makes use of unique data assets and deep domain expertise to provide key insights and decision support solutions for informed decision-making process. These insights are typically drawn from a critical fact base, collated from interactions with clients in over 11,000 distinct organizations worldwide, 230,000 annual one-on-one client communications and 18,000 vendor briefings.

Gartner offers timely, thought-provoking and comprehensive analysis, known for its high quality, independence and objectivity. This unbiased, pragmatic and actionable insight can help organizations to effectively save thousands of dollars through in-depth research. With rapid strides in technology and massive proliferation of the Internet of things, the differences between the physical and digital worlds have gradually blurred. As a result, information technology has become critical for all firms to support higher productivity, improve performance metrics and protect the enterprise from cyber-security threats. In order to keep abreast of the new developments in the dynamic and complex industry and take well-informed decisions to maximize returns on IT capital investments, business enterprises as well as government agencies use Gartner’s research and consultancy services. This offers a strong value proposition for the company.

With a diligent execution of operational plans, Gartner has recorded double-digit growth in key metrics over a decade. In addition, this performance-driven firm has a strong cash flow and a healthy balance sheet position. The company has a vast, untapped market opportunity worth an estimated $61 billion. Gartner has outperformed the Zacks categorized Consulting Services industry with an average year-to-date return of 25.8% compared with a 8.3% gain for the latter.

The acquisition of CEB further reinforces Gartner’s market strength. The combination of Gartner’s analyst-driven, syndicated research and advisory services with CEB’s best practice and talent management insights across a range of business functions is likely to provide a comprehensive and differentiated suite of services portfolio across the globe.

Gartner has a recurring revenue stream with 75% of its total revenue generated through subscription and long-term contracts. In addition, the company has a large and diverse addressable market with low customer concentration that mitigates operating risks. Operating in an industry with low barriers to entry, Gartner has an integrated research and consulting team designed to best serve its client's needs. This provides it a competitive advantage against its rivals. Leveraging its intellectual capital, Gartner creates and distributes proprietary research content as broadly as possible via published reports, interactive tools, facilitated peer networking, briefings, consulting and advisory services, and events. These facilitate a steadily improving revenue stream for this Zacks Rank #2 (Buy) stock, which has increased at a CAGR of 11.5% from 2009 to 2016.

Some other stocks in the industry worth considering include NV5 Global, Inc. NVEE, ABM Industries Incorporated ABM and ManpowerGroup Inc. MAN, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.  

NV5 Global has a long-term earnings growth expectation of 20%. It topped earnings estimates twice in the trailing four quarters with a positive surprise of 1.8%.

ABM Industries topped estimates thrice in the trailing four quarters with an average positive earnings surprise of 16.9%.

ManpowerGroup has a long-term earnings growth expectation of 12%. It surpassed estimates thrice in the trailing four quarters with an average positive earnings surprise of 4.5%.

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Gartner, Inc. (IT): Free Stock Analysis Report
ABM Industries Incorporated (ABM): Free Stock Analysis Report
NV5 Global, Inc. (NVEE): Free Stock Analysis Report
ManpowerGroup (MAN): Free Stock Analysis Report
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