Shares of S&P Global(NYSE: SPGI) Rallied sharply after the release of the winning report of the fourth quarter, that the estimates of Wall Street surpassed. For the period ending on December 31. The Giant Financial Services Intelligence recorded an increase of 14% on an annual basis in every three -month turnover, while the adapted profit per share (EPS) increased by 20% to $ 3.77. If shareholders also needed good news, the company offered strong prospects for the coming year in addition to a new stock buying authorization.
The trends are solid, but since the share has risen by 24% in the past year and is currently being traded at a record high, can the rally continue? Let’s discuss whether S&P Global Stock is a purchase.
S&P Global is recognized as a leader in financial analyzes, including credit assessments, investment research and index data. A resilient economic environment, in combination with positive investor sentiment towards capital markets, has been a ridge for his company.
An important performance indicator that emphasizes the operational momentum is the invoiced issue, which reflects the value of the rated credit instruments. The figure reached a record of $ 3.9 trillion in 2024, an increase of 54% compared to the previous year, whereby favorable market conditions were recorded between tight credit spreads and lower interest rates.
Within the 31% on the annual basis of revenue growth contribution of ratings in 2024, an important dynamic is the continuous diversification that goes beyond the traditional focus on investment quality and high-interest debt in other types of loans and structured products. This category generated an increase in sales by 62% compared to last year.
S&P Global also sees a strong response to its new offer, referred to as the vitality index. In this case, products such as the Carfax car lists have been given the tracker, energy transition -intelligence and LNG price reviews insight traction.
Image source: Getty images.
Another important development for S&P Global has been his efforts to integrate artificial intelligence (AI) functionality into its ecosystem. The initiative includes the Spark Assist Generative AI Co-Pilot, which aims to improve the productivity of users and the value proposition of the platform.
Management reactions have projected optimism that these recent innovations have positioned the company for sustainable, profitable growth. Before 2025, the company leads to revenue growth between 5% and 7% against the particularly strong 2024 growth rates. The adjusted EPS target of the company from $ 17.00 to $ 17.25 represents an increase of 9% at the center of the $ 15.70 result in the previous year.
Metric
2024
2025 Estimation
Turnover growth (yoj)
14%
5% to 7%
Custom profit per share (EPS)
$ 15.70
$ 17.00 to $ 17.25
Custom EPS growth (yoj)
25%
8% to 10%
Data source: S&P Global.
The appeal of S&P Global Stock as a possible investment option starts with insight that many of its data products and coverage of credit assessments are often crucial in the daily activities of its customer base. Institutional investors, banks and asset managers rely on the specialized market information of S&P Global, which form an ingrained and mutually affordable commercial relationship.
The financial profile of the company, defined by stable cash flows and high -quality income Given the historically strong contract renewal rates, helps to justify a premium appreciation. Shares of S&P Global act on 31 times the estimate of 2025 EPS as a forward price-gain ratio (p/e). In particular, this level is a modest discount for competitors in the industry such as Moody’s And MSCI offering alternative solutions, acting with forward p/e ratios of 37 and 34 respectively. This measure offers R&P Global a relatively good value, with an important advantage that the larger and more diversified platform is.
S&P Global also stands out as a “dividend king”, with an impressive 52-year history of increasing his dividend payment. The current quarterly rate of $ 0.96 per share yields 0.7%, which is linked to a $ 4.3 billion stock purchase authorization as part of the company’s dedication to reward shareholders.
SPGI PE -RATIO (forward) data by Ycharts
I am Bullish about S&P Global shares in 2025. Due to exposure to the broader themes of the financial service sector, as long as the capital markets with low volatility and a steady increase in asset prices remain, the company is on the way to its profit goals. Investors who trust the company’s ability to consolidate market share have plenty of reasons to buy and keep S&P worldwide shares for the long term.
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Then Victor has no position in the aforementioned shares. The Motley Fool has positions and recommends S&P Global. The Motley Fool has a disclosure policy.
Is S&P Global Stock a purchase now? was originally published by the Motley Fool
