SPGI - S&P Global: Strong Business Characteristics Make Them A Buy At This Price

2024-06-15 03:18:39 ET

Summary

• S&P Global provides solid business characteristics that include high switching costs, an asset-light structure, strong brand reputation, and inherent diversification by operating in many uncorrelated segments.
• Year-to-date, the stock has barely moved, but over the long term, it has vastly outperformed the S&P 500. Currently, it is trading at its average multiple from recent years.
• The raise in company guidance, coupled with a potential exit from a low-synergetic business segment, makes it a buy at this price.

S&P Global's ( SPGI ) stock has barely moved in 2024, with a total return of -0.34% , which is a clear underperformance compared to the general market, which has gained 13.9% this year. Describing S&P Global in a single word is challenging. Is it a rating agency, a financial data supplier, or an indices provider? Well, it's all of those. ...

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