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S&P Global Stock Nears High With Promising Growth Ahead

S&P Global shows strong growth as its stock nears an all-time high. Investors can expect significant EPS growth in coming years as macro conditions stabilize.

Date: 
AI Rating:   7
Performance Overview
S&P Global (NYSE: SPGI) has seen its stock rally over 80% in the past five years, signaling strong investor interest and confidence in its business model. Its revenue grew at a remarkable CAGR of 16% from 2019 to 2024, demonstrating solid revenue growth, which is expected to continue in the near future.

Revenue Growth
S&P Global's revenue growth has fluctuated, showing a robust 35% in 2022 but dropping to 12% in 2023. Looking forward, the company anticipates a revenue increase of 5% to 7% for 2025. This upward trend indicates S&P Global's continued resilience despite macroeconomic challenges, supporting positive sentiment among investors.

EPS Analysis
For earnings per share (EPS), growth rates also varied. EPS experienced a notable drop of (18%) in 2022 and (19%) in 2023 due to rising interest rates and a divestiture that affected net profits. However, for 2024, a significant EPS growth of 73% to 76% is forecasted, highlighting a recovery and positive outlook. The non-GAAP EPS is expected to rise by 35% to 37%, showcasing the company’s ability to bounce back quickly by excluding one-time expenses and focusing on core operations.

Future Expectations
Analysts project S&P Global's revenue and GAAP EPS to grow at a CAGR of 7% and 14% respectively from 2024 to 2027. This reflects ongoing confidence in the company's long-term growth potential. Additionally, their commitment to buybacks and maintaining a dividend indicates a focus on returning value to shareholders, enhancing investor appeal.

Final Thoughts
Overall, the report suggests that S&P Global's stock has the potential for further appreciation, particularly if interest rates decline and economic conditions stabilize. This should drive investor interest and potentially lead to elevated stock prices in the upcoming years.
Stocks:  SPGI