Shares of S&P World -Et(NYSE: SPGI) Raled suddenly after releasing his fourth quarter earnings report, which surpassed Wall Street estimates. For the period ended on December 31., the Giant Intelligence Financial Services posted a 14% year-on-year increase in quarterly revenue, while earnings were adjusted per share (EPS) up 20% to $ 3.77. If shareholders needed further good news, the company offered a strong attitude for the coming year alongside new Share a purchase back Authorization.
The trends are solid, but given that the stock is up 24% over the past year and is currently trading at an all -time high, can the rally hold on? Let's discuss whether S&P Global Stock is a purchase now.
S&P Global is recognized as a leader in financial analytics, including credit rating, investment research, and index data. A durable economic environment, along with the positive feel of investors towards capital markets, has been a tail for its business.
The bills announcement is a key performance indicator highlighting the operating momentum, reflecting the value of credit instruments. The figure reached $ 3.9 trillion in 2024, up 54% from the previous year, holding favorable market conditions between tight credit spreads and lower interest rates.
Within the 31% year -on -year revenue growth contribution of scales in 2024, important dynamics are the continuous diversification beyond the traditional focus on investment and high -yield degree debt to other types of loans and structured products. This category generated a 62% increase in revenue compared to last year.
S&P Global also sees a strong response to his new offerings, referred to as his vitality index. In this case, products like Carfax car list data tracker, energy transfer intelligence, and LNG price assessments insight have gained traction.
Image source: Getty images.
Another major development for S&P Global has been its effort to integrate the functionality of artificial intelligence (AI) across its ecosystem. The initiative includes a co-pilot AI spark, which seeks to improve consumer productivity and offer the value of the platform.
Management comments have projected optimism that these recent innovations have set the company for durable, profitable growth. For 2025, the company takes a 5% and 7% revenue growth against a particularly strong 2024 growth rate benchmark. The company's customized EPS target range from $ 17.00 to $ 17.25 represents an increase of an increase of 9% in the middle point of the $ 15.70 result in the previous year.
Metric
2024
2025 Estimated
Revenue Growth (YOY)
14%
5% to 7%
Customized earnings per share (EPS)
$ 15.70
$ 17.00 to $ 17.25
Customized EPS Growth (YOY)
25%
8% to 10%
Data Source: S&P Global.
S&P's world stock attraction as a possible investment opportunity begins with an understanding that many of its data products and credit rating coverage are often essential in the daily operations of its customer base. Institutional investors, banks, and asset managers rely on specialist market knowledge from S&P Global, forming a joint commercial relationship that is of mutual benefit.
The company's financial profile, defined by steady cash flow and high quality earnings given strong historic contract renewal rates, helps justify a premium valuation. S&P Global shares trading at 31 times its estimated EPS 2025 as priced-to-on-ears (P/s.) Ratio. Notably, this level is at a moderate decrease to industry competitors as Moody's and Msci That offers alternative solutions, trading in P/E onwards ratios from 37 and 34, respectively. According to this measure, S&P Global offers relatively good value, with a key advantage is its larger size and more varied platform.
S&P Global also stands out as a “king of dividend,” with a striking 52 -year history of increasing his dividend holding. The current quarterly rate of $ 0.96 per share generates 0.7%, which together with $ 4.3 billion's sharing repurchase repurchase authorization as part of the company's commitment to rewarding shareholders.
I'm bullish on S&P Global shares enters 2025. Through its exposure to the wider themes of the financial services sector, as long as capital markets continue to boil with low volatility and a steady increase in asset prices, the Company on track achieving its earnings targets. Investors who are confident in the company's ability to aggregate market share have plenty of reasons to buy and hold the long -term S&P stock.
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And Victor He does not have a position in any of the stocks mentioned. The Motley Fool has jobs in and recommends S&P Global. The fool has motley and Disclosure Policy.
