IT Stock Analysis — Gartner
Sector: Business Services
AI Verdict
At 12.3x forward earnings and rapid expected EPS growth, Gartner looks cheap for the growth on offer if its data-driven subscription model continues to lock in enterprise clients.
Competitive Moat
Gartner dominates the IT research and advisory space with a subscription-based model and proprietary data, making it the default source for enterprise tech decision-makers. Its entrenched client relationships and data assets create high switching costs for large organizations.
Summary
Gartner's forward P/E of 12.3x and expected 35.2% EPS growth make it unusually cheap for a research subscription business.
Where It Stands
Shares are down -22.19% over the past year, trade at 12.3x next year's earnings (well below the business services median of ~20x), and RSI at 61.5 signals neutral-to-elevated territory.
Key Metrics
- RSI: 61.5 — Near Overbought
- Trailing P/E: 16.7x
- Forward P/E: 12.3x
- PEG Ratio: 0.53
- Earnings Growth: +0.4%
- Revenue Growth: +0.0%
- Market Cap: $11.8B
- 1-Year Return: -22.19%
- 52-Week High: $265.85
- 52-Week Low: $124.25
Analyst Consensus
12 Buy · 11 Hold · 2 Sell (25 analysts)
Bull Case
With analysts expecting 35.2% EPS growth and a forward P/E of just 12.3x, you're paying a low price for rapid earnings expansion if Gartner's subscription moat holds.
Bear Case
If the P/E reverts to a sector median 20x but earnings disappoint, the -22.19% 1-year return could deepen, especially with RSI at 61.5 hinting at limited near-term upside.
Catalyst to Watch
Watch for upcoming quarterly earnings—if EPS growth matches the 35.2% forecast, the valuation gap could close quickly.