IT Stock Analysis — Gartner
Sector: Business Services
AI Verdict
Gartner trades cheap for the growth you're getting, and if its entrenched client relationships drive the expected earnings rebound, the current price looks like a disconnect from the business model's stickiness.
Competitive Moat
Gartner dominates IT research and advisory by locking in enterprise clients with proprietary data, recurring subscription contracts, and analyst relationships that are hard for new entrants to replicate. Its defensibility comes from the sheer depth of its research library and the trust built with C-suite decision-makers over decades.
Summary
Gartner trades at just 12.0x next year's earnings with analysts expecting 35.4% EPS growth, making it unusually cheap for a research subscription business.
Where It Stands
The stock is down -61.18% over the past year, trades at 12.0x forward earnings versus a sector median of 20x, and its RSI of 58.7 is neutral.
Key Metrics
- RSI: 58.7 — Neutral
- Trailing P/E: 16.2x
- Forward P/E: 12.0x
- PEG Ratio: 0.46
- Earnings Growth: +0.4%
- Revenue Growth: +0.0%
- Market Cap: $11.0B
- 1-Year Return: -61.18%
- 52-Week High: $430.19
- 52-Week Low: $139.18
Analyst Consensus
12 Buy · 11 Hold · 2 Sell (25 analysts)
Bull Case
With forward EPS growth projected at 35.4% and a forward P/E of 12.0x, you're paying a low price for a business expected to rebound sharply.
Bear Case
If the forward P/E reverts even partway to the sector median (from 12.0x to 16x), the stock could see a 33% valuation uplift — but if growth disappoints, there's little support after a -61.18% drop.
Catalyst to Watch
Watch for quarterly EPS guidance updates; any sign of sustained double-digit earnings growth could quickly re-rate the stock.