S&P Global: Wide Moat Meets a Technical Turnaround

Wait 5 sec.

S&P Global: Wide Moat Meets a Technical TurnaroundS&P Global, Inc.BATS:SPGIfinvestnomicsSPGI is seeing buying interest following a retracement as its turnaround continues. The stock has regained its upward momentum and now trades above the 20 and 50 EMAs, indicating improving technical strength. S&P Global, Inc. is a $133bn market cap company that provides transparent and independent ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. It operates through four segments: Ratings, Indices, Energy, and Market Intelligence. Its services include credit ratings and research, investment benchmarks, energy and commodity pricing information, and multi-asset data and analytics integrated with workflow solutions. SPGI has a wide economic moat and has grown revenue and EPS for the last three quarters, with the most recent growth rates of 11% and 18%, respectively. Operating and net margins stand at 47% and 29%, while ROE and ROIC are 15% and 11%. The company has a current ratio of 1.0x and a debt-to-equity ratio of 0.5x. Revenue is forecast to decline over the next three quarters. EPS is forecast to grow 6% in the first quarter, decline in the second, and increase again in the third. The average analyst target price is approximately $519.27, implying about 16% upside.