Why Gartner Should Remain on Your Investment Radar Right Now

Gartner (IT) has been making waves in the market lately, climbing 9.5% over the last 30 days and decisively outpacing its sector peers who gained just 5.9% during the same window. This outperformance isn’t accidental—the research and advisory powerhouse carries an impressive Growth Score of A, signaling robust financial health and sustainable expansion potential.

The Engine Behind Growth

What’s fueling this momentum? At its core lies Gartner’s unmatched research division, which delivers critical market insights and strategic guidance that enterprises depend on for their most important decisions. The 2017 integration of CEB Inc., a leader in best-practice intelligence and workforce optimization, significantly fortified the company’s competitive positioning. By merging this acquisition with its deep-rooted analyst networks and subscription-based research offerings, Gartner established a formidable moat around its business model.

The company’s revenue trajectory reflects this strength, with projections of 3.5% growth in 2025 and 3.3% in 2026. More importantly, Gartner has been strategically investing in technology to stay ahead. AskGartner, an AI-powered platform, exemplifies this commitment. This tool democratizes access to Gartner’s proprietary insights, enabling users to retrieve comprehensive analyses instantly—a game-changer in an information-hungry market. The system taps into Gartner’s unparalleled dataset, particularly its industry-leading IT Key Metrics repository.

Engagement Beyond Digital

Gartner’s annual symposiums remain powerful revenue streams and brand amplifiers. The recent 35th IT Symposium/Xpo in Orlando drew over 7,000 technology leaders for four days of networking, peer learning, and expert consultation—a format that competitors struggle to replicate.

Share repurchases underscore management’s confidence in intrinsic value. The company bought back 7.3 million shares for $1.7 billion (2021), 3.8 million for $1 billion (2022), 3.9 million for $600 million (2023), and 1.6 million for $700 million (2024). This disciplined capital allocation sends a positive signal to the investment community.

The Liquidity Concern

Not all metrics sparkle. Gartner’s current ratio stands at 0.88, trailing the sector average of 1.19. When this ratio dips below 1.0, it warrants attention—the company might face challenges covering near-term liabilities from current assets. Investors should monitor this closely in upcoming quarters.

The Investment Case

Gartner holds a Zacks Rank of #3 (Hold), placing it in neutral territory. However, the market offers alternative opportunities with stronger momentum. Genpact (G) carries Zacks Rank #2 (Buy) status with 9.6% expected long-term earnings growth and consistent 5.5% quarterly earnings surprises. Palantir Technologies (PLTR) also sports Rank #2 credentials, boasting 50% long-term earnings growth expectations and an impressive 16.3% average earnings surprise—beating or matching estimates in three of the last four quarters.

For those seeking exposure to transformative technology beyond today’s trends, the quantum computing revolution deserves attention. While quantum remains nascent, major cloud and tech giants—Microsoft, Google, Amazon, Oracle, Meta, and Tesla—are racing to incorporate it. The next dominant players in this space could deliver extraordinary returns for early believers.

Bottom line: Retain Gartner if you already hold it, but explore higher-conviction opportunities for new capital deployment.