Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers executives and teams in an organization the opportunity to learn, share, and network. The Consulting segment offers market-leading research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.

Gartner appears to be a high-quality, but no longer cheap, business with strong profitability and notable balance-sheet risks. On valuation multiples, the picture is generally supportive: P/E of 16.73, P/S of 2.19, and P/FCF of 7.56 are below the industry median, which suggests a more moderate valuation relative to the sector. At the same time, P/B and debt/equity look anomalous because of almost zero equity, so these metrics should be interpreted cautiously rather than as a classic case of undervaluation. Profitability is very strong: ROE, ROA, and ROI are significantly above industry benchmarks, while a gross margin of 69.63%, operating margin of 17.25%, and net margin of 11.43% confirm the high quality of the business. Margin trends are generally stable, without any obvious deterioration, which is important for supporting the valuation. EPS and forecast EPS remain high, and earnings and operating profit in absolute terms also look sustainably positive. Revenue remains at a high level and does not show a sharp decline, although growth does not appear to be accelerating. The weak point is liquidity: the current ratio is below 1, the quick ratio is zero, which means there is limited short-term financial flexibility. Debt burden remains significant: long-term debt of around $3.0 billion, combined with very thin or almost zero equity, increases sensitivity to interest rates and refinancing. Cash on hand looks comfortable, but it is not enough to fully offset the liabilities structure. Negative total shareholder equity and high total liabilities point to a fragile balance sheet, even if the operating business generates strong cash flows. Overall, the fundamentals support a moderately positive view of the business quality, but do not justify an aggressive upward re-rating. For an investor, this is a story of strong operating efficiency and profitability with elevated balance-sheet risk, so a conservative approach to revaluation is appropriate.

IBIT-12.26

Gartner, Inc.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Средний индекс, значительно упал. Рынок не поддерживает быков.

Medium index, significantly down. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Strong profitability and low P/E, P/S, and P/FCF support the valuation, but weak liquidity and high debt burden limit upside potential.

Key Points
Sandisk's impressive growth is likely to continue in 2027 due to the favorable demand-supply conditions in the NAND flash industry.
The company's terrific growth potential and cheap valuation indicate that it can still be bought by growth investors looking to build a million-dollar portfolio.
Sandisk (NASDAQ: SNDK) has created incredible wealth for investors in 2026, with shares of the flash storage specialist rising 621% this year.
So, investors who bought Sandisk to build a million-dollar portfolio are sitting on nice gains now. The good news for investors is that Sandisk still has room to run higher. Let's look at why it makes sense to buy this growth stock even after the stellar gains it has posted in 2026.
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The terrific demand for Sandisk's storage solutions is sustainable
Sandisk's NAND flash storage solutions are in great demand in artificial intelligence (AI) data centers. Gartner predicts that global NAND flash revenue will surge by a whopping 372% in 2026, driven by healthy AI data center demand and tight supply.
Sandisk is an important player in the NAND flash market. It controlled 11% of this space in the second quarter of 2026, according to Counterpoint Research. Not surprisingly, Sandisk's revenue and earnings grew at a stunning pace in fiscal 2026 (which ended on July 3). The company's top line shot up by 175% year over year to $20.25 billion. Non-GAAP earnings jumped to $70.88 per share from just $2.99 in the prior year.
Importantly, Sandisk is witnessing healthy growth across all its business segments. Its data center segment revenue jumped by 5.4x in the previous fiscal year to $5.15 billion. The edge business, which is Sandisk's largest segment, saw a jump of almost 3x in revenue in fiscal 2026 to $12.16 billion. Sandisk's edge business includes sales of flash memory for smartphones, personal computers (PCs), and gaming consoles, among others.
The company notes that the edge business has room to expand further, thanks to the growth of on-device AI capabilities in areas such as robotics, automotive, and physical AI. And finally, Sandisk's consumer segment, which includes sales of removable flash memory products to customers, is also in fine shape. The segment's revenue increased by 29% in fiscal 2026 to $2.94 billion, an impressive result given the sharp spike in NAND flash prices.
The good news for Sandisk investors is that the NAND flash supply shortage is going to persist in 2027. Gartner estimates that NAND flash prices could increase by 30% next year, following a 293% jump in 2026. The firm expects the favorable price environment to continue until the end of the decade. Even Sandisk noted in its investor day presentation last month that its non-GAAP operating margin will climb to 75% by fiscal 2030.
That points to a nice bottom-line bump considering that Sandisk's non-GAAP operating margin was at 63% in fiscal 2026. So, there is a strong likelihood of Sandisk stock heading even higher over the long run. Moreover, the stock's attractive valuation makes it a no-brainer buy for growth-oriented investors.
It isn't too late to buy Sandisk
Sandisk's astronomical growth is poised to continue in fiscal 2027. Its revenue is expected to jump 142% to $49 billion, while earnings per share could triple, according to consensus estimates. What's more, Sandisk is trading at 25 times trailing earnings and 8 times forward earnings.
So, growth investors looking to build a million-dollar portfolio can still consider buying Sandisk as its healthy growth potential and cheap valuation can send the stock soaring even after the multibagger gains it has clocked in 2026.
Should you buy stock in Sandisk right now?
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Is Sandisk a Millionaire-Maker Stock After Its 2026 Run?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P 500 Equal Weight Technology ETF (Symbol: RSPT) where we have detected an approximate $423.9 million dollar inflow -- that's a 7.0% increase week over week in outstanding units (from 91,110,000 to 97,480,000). Among the largest underlying components of RSPT, in trading today Workday Inc (Symbol: WDAY) is up about 1.7%, Gen Digital Inc (Symbol: GEN) is down about 2.5%, and Gartner Inc (Symbol: IT) is lower by about 0.2%. For a complete list of holdings, visit the RSPT Holdings page » The chart below shows the one year price performance of RSPT, versus its 200 day moving average:
Looking at the chart above, RSPT's low point in its 52 week range is $41.45 per share, with $67.49 as the 52 week high point — that compares with a last trade of $65.97. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further RSPT Research:

Notable ETF Inflow Detected - RSPT, WDAY, GEN, IT

Waste Connections, Inc. WCN shares have declined 10.7% over the past year compared with the Business - Information Services industry, which plunged 11.5%. Meanwhile, the Zacks S&P 500 Composite has returned a 14.2% gain.
The Zacks Consensus Estimate for 2026 top line is pegged at $10 billion, suggesting 6% year-over-year growth. The top line is further expected to move up 5.7% year over year in 2027. For 2026 earnings per share, the consensus mark is pinned at $5.62, indicating 9.1% year-over-year growth. The anticipated growth rate for 2027 is 10.8%.
Factors That Augur Well for WCN’s Success
WCN's commitment to sustainability is encouraging, as the company continues to make progress in emissions reduction, recycling, biogas recovery and employee safety. In 2024, WCN reduced Scope 1 and 2 emissions by 9% from the 2019 baseline, while emissions intensity declined to 875 MT CO2e per million dollars of revenue from 975 in 2023. The company also recycled 2.36 million tons of commodities, up from 2.21 million tons in 2023, and increased annual landfill gas collected for energy to 32.3 billion cubic feet.
Moreover, WCN's focus on sustainability extends to its operations and workforce. The company avoided more than 7.2 million MT CO2e through recycling in 2024 and collected landfill gas for beneficial use at 30 facilities. Its safety performance also improved, with the incident rate declining to 12.8 in 2024 from 15.0 in 2023, while voluntary employee turnover fell to 12.3% from 16.7%. These initiatives support WCN's broader sustainability targets and demonstrate continued progress toward its environmental and workforce goals.
Waste Connections’ strong second-quarter 2026 performance and raised 2026 outlook supportits growth prospects. Revenues increased 6.4% year over year to $2.56 billion, while adjusted EBITDA rose 6.8% to $840.1 million. The adjusted EBITDA margin expanded to 32.8%. Solid waste internal growth of 3.6% in the quarter, driven by a 5.6% core price increase, highlights the company’s ability to generate organic growth despite lower unit volumes.
The company’s prospects are further supported by acquisition activity, improving commodity trends and strong cash generation. Waste Connections completed acquisitions with more than $100 million in annualized revenues and remains positioned to pursue further acquisition opportunities. Six-month operating cash flow rose to $1.28 billion, while adjusted free cash flow stood at $703.4 million. Consequently, WCN raised its 2026 outlook for revenues to $10.02-$10.05 billion and $3.33-$3.34 billion in adjusted EBITDA, with adjusted free cash flow expected at $1.40-$1.45 billion.
WCN’s shareholder-friendly initiatives support long-term value creation for investors. Despite fluctuations in its cash position, the company has consistently rewarded shareholders through dividend payouts. In 2023, 2024 and 2025, Waste Connections paid $271 million, $302 million and $334 million in dividends, respectively. Consistent dividend payments provide a dependable source of income for income-seeking investors. In the third quarter, the company’s board of directors declared a regular quarterly cash dividend of $0.35 per U.S. common share, payable on Aug. 20, 2026, to shareholders of record as of Aug. 6, 2026. The board intends to review the quarterly dividend each October, with a long-term objective of increasing the dividend amount.
WCN’s Key Risks to Watch
Waste Connections’ prospects are facing pressure from rising costs and weaker commodity values. During the second quarter, rapidly increasing fuel and related costs weighed on profitability, while comparatively lower commodity values continued to create a drag. These pressures were reflected in operating income, which declined to $437.6 million from $459.5 million in the prior-year quarter, despite revenues increasing 6.4%.
WCN’s growth is also being affected by lower unit volumes and higher capital requirements. Solid waste unit volume declined 1.9% in the second quarter, while recycling contributed a negative 0.2% to internal growth. Moreover, capital expenditures increased to $598.9 million in the first six months of 2026 from $497.8 million a year ago, with full-year capital expenditures projected at approximately $1.25 billion. As of June 30, 2026, the company also reported debt at 54% of book capitalization, which could limit financial flexibility as it continues to invest in its operations and pursue acquisitions.
Waste Connections’ Zacks Rank & Stocks to Consider
WCN currently carries a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks for investors’ consideration are Gartner, Inc. IT and MediaAlpha, Inc. MAX.
IT currently sports a Zacks Rank of #1. The company has an expected earnings growth rate of 9.26% for 2026.
IT has an encouraging earnings surprise history, as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.51%.
MAX currently sports a Zacks Rank of 1. The company has an expected earnings growth rate of 18.5% for the year 2026.
The company has an encouraging earnings surprise history, as it has topped the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, delivering an average earnings surprise of 79.33%.
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Here's Why Investors Must Hold WCN Stock in Their Portfolios Now

Republic Services RSG stock has gained 7.1% over the past three months, outpacing the modest performance of the industry and the Zacks S&P 500 Composite.
3-Month Share Price Performance
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RSG’s 2026 revenues is set at $17.3 billion, implying a nearly 4% year-over-year growth. For EPS, the consensus mark for 2026 is pegged at $7.27, indicating a 3.6% year-over-year uptick.
For 2027, the consensus mark for revenues is pinned at $18.2 billion, up 5.4% year over year. EPS is expected to increase 10.1% year over year.
Factors That Augur Well for RSG’s Success
Strong Pricing & Margins: Republic Services is logging prudent pricing, supporting healthy price-cost spreads despite shouldering volume pressure. During the second quarter of 2026, core price on related revenues gained 6.4% year over year, including 7.8% growth in open-market pricing, while average yield on total revenues was 3.4%. The underlying business delivered 90 basis points (bps) year-over-year margin expansion, driven by pricing outpacing cost inflation. Management anticipates 60-70 bps margin expansion for 2026.
Environmental Solutions Present Growth Opportunities: During the second quarter of 2026, RSG’s Environmental Solutions business gained $53 million sequentially, with adjusted EBITDA margin expanding 100 bps sequentially. Management anticipates revenues and margin to grow during the second half of 2026. The company identified the per- and polyfluoroalkyl substances business as an opportunity where it expects its revenue to exceed more than $100 million generated in 2025. The driving factors include a growing pipeline across hazardous waste, water treatment and robust waste capabilities.
Cash-Backed Growth & Shareholder Returns: The company generated $2.4 billion of operating cash flow and $1.6 billion of adjusted free cash flow during the first half of 2026. Over the same period, RSG utilized $860 million in acquisitions and returned more than a billion to its shareholders through repurchases and dividends.
The quarterly dividend was also increased to 67 cents per share. With full-year adjusted free cash flow guidance raised to $2.54-$2.575 billion from the prior view of $2.52-$2.56 billion, the company has the internal funding capacity to pursue buyouts, invest in operations and maintain shareholder distributions.
Risks Faced by Republic Services
Volume Pressure Remains: The company faces pressure on organic volumes consistently. During the second quarter of 2026, volumes related to revenues edged down by 1.9% year over year and total revenues by 1.6%. RSG witnessed a 2.2% year-over-year dip in large container volumes amid persistent softness in construction activity, while residential volumes declined 4.3% due to contract losses. Despite management’s optimism surrounding sequential improvement, residential volumes are anticipated to remain negative through 2027.
Fuel & Commodity Price Risk: Republic Services’ profitability can be affected by fluctuations in fuel and commodity prices. During the second quarter of 2026, net fuel deteriorated adjusted EBITDA margin by 30 bps, accompanied by recycled commodity prices creating a 10 bps drag. While higher costs are offset by the fuel recovery mechanism, there exists a timing lag between an increase in fuel expenses and recovery from customers, which can create near-term earnings and margin pressure.
RSG’s Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Figure Technology Solutions FIGR and Gartner IT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Figure Technology has a long-term earnings growth expectation of 56.9%. FIGR delivered a trailing four-quarter earnings surprise of 28.2%, on average.
Gartner has a long-term earnings growth expectation of 18.5%. IT delivered a trailing four-quarter earnings surprise of 13.5%, on average.
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Here's Why You Should Hold on to Republic Services Stock for Now

GDS Holdings Limited GDS stock has declined 29.8% over the past six months against the marginal rise of the industry and the Zacks S&P 500 Composite's 14.6% return.
6-Month Share Price Performance
The Zacks Consensus Estimate for GDS’s 2026 revenues is set at $1.9 billion, implying 17.4% year-over-year growth. For EPS, the consensus mark for 2026 is pegged at $2.23, indicating a lofty 1,073.7% year-over-year upsurge.
Image Source: Zacks Investment Research
Factors That Augur Well for GDS’s Success
Solid Booking Momentum: During the second-quarter 2026earnings call William Huang, the CEO, said that GDS Holdings is well-positioned to meet rising demand for computing power and AI infrastructure as China’s leading tech players and emerging AI leaders drive the adoption of advanced agentic models. The company can leverage its customer relationships, presence across China, execution bandwidth and financing capabilities to strengthen its position.
Driven by rising AI demand, record bookings reached 470 megawatts in the first half of 2026, backed by 260 megawatts recorded during the second quarter of 2026. These figures are backed by business wins from each of the three largest hyperscale customers and strong relationships with a group of emerging AI leaders, which have the potential to generate incremental demand in the future. Management’s optimism appears high as the full-year sales target is expected to be 1 gigawatt.
Improving Revenue Visibility: In the second quarter of 2026, GDS Holdings’ area under construction increased 43.9% sequentially and 28.8% from the year-ago quarter. Customers have already committed to a significant chunk of capacity that has not yet entered service, as evidenced by an 89.2% pre-commitment rate for area under construction, painting a clear picture of forward revenue visibility.
GDS’s area in service gained 10.8% year over year in the second quarter of 2026. The company’s operational capacity is significantly high, as the commitment rate for area in service is at 92.4% during the second quarter of 2026. That being said, a jump in utilization rate from 77.5% to 79.2% in the second quarter of 2026 signals substantial improvement in operational capacity usage.
Growth via Backlog Conversion: Customers request GDS Holdings to reserve deployable capacity at the same site for future needs. For the first half of 2026, the company secured an additional 600 megawatts of reservations from its customers, representing customer-committed capacity that has not yet fully reached the revenue-generating stage. Management stated that a substantial proportion of backlog is anticipated to become billable within six to eight quarters.
During the second quarter of 2026, net additional area utilized was 21,307 sqm, hinting at committed capacity progressing through this process. Customers are moving into delivered capacity rather than bookings accumulating. A high backlog provides a peek into future growth as committed capacity moves toward delivery and customer move-ins.
Risks Faced by GDS Holdings Limited
High Utility Costs Affect Margin: Despite a 6.5% year-over-year rise in the top line during the second quarter of 2026, accompanied by a 2.5% uptick in adjusted EBITDA, GDS Holdings’ margin declined by 220 basis points year over year to 45.5%. This decline was caused by utility costs representing a higher percentage of the top line.
Electricity holds a major chunk of data center operating expenses. Considering that this expense increases consistently, it could curb the extent to which AI demand raises revenues, translating into EBITDA growth.
Sizable Debt & Capital-Intensive Expansion: The company invests in land, power infrastructure and data-center construction. GDS Holdings raised its capital expenditure outlook for 2026 amid robust demand. The company holds significant short- and long-term debt as a result of exponential pipeline increases in funding requirements, which could keep leverage high despite the company’s solid liquidity position.
GDS’s Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Figure Technology Solutions, Inc. FIGR and Gartner IT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Figure Technology has a long-term earnings growth expectation of 56.9%. FIGR delivered a trailing four-quarter earnings surprise of 28.2%, on average.
Gartner has a long-term earnings growth expectation of 18.5%. IT delivered a trailing four-quarter earnings surprise of 13.5%, on average.
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Here's Why You Should Hold on to GDS Holdings Stock for Now

For Immediate Release
Chicago, IL – September 9, 2026 – Stocks in this week’s article are The Allstate Corp. ALL, Arista Networks, Inc. ANET, Ross Stores, Inc. ROST, Gartner, Inc. IT and Micron Technology, Inc. MU.
Buy 5 High ROE Stocks as Rate Hike Fears Keep Markets at Bay
After two back-to-back winning runs, the broader equity markets plunged sharply on Friday as a strong jobs report reignited fears of a probable interest rate hike in the impending Federal Reserve meeting later this month. The nonfarm payrolls report for August revealed that the U.S. economy added 162,000 jobs last month, outpacing the broad-based expectations of 53,000 job additions. In addition to a reversal of the summer slowdown in hiring, the unemployment rate held steady at 4.1%, portraying stable labor market conditions. This apparently pulled down equity markets, while bond yields surged.
Surging oil prices further strained the markets and increased concerns that elevated energy prices will drive inflation higher, leading to a likely rate hike. With a lasting peace agreement in the Middle East fading to oblivion, market uncertainty remained elevated. As investors employ a wait-and-see approach in a classic example of "backing and filling" in the market, they can benefit from "cash cow" stocks that garner higher returns.
However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios, such as return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. The Allstate Corp., Arista Networks, Inc., Ross Stores, Inc., Gartner, Inc. and Micron Technology, Inc. are some of the stocks with high ROE to profit from.
Why ROE?
ROE = Net Income/Shareholders' Equity
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.
Moreover, ROE is often used to compare the profitability of a company with other firms in the industry; the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management's efficiency in rewarding shareholders with attractive risk-adjusted returns.
Here are five of the 12 stocks that qualified the screening:
Allstate: Headquartered in Northbrook, IL, Allstate is the third-largest property-casualty (P&C) insurer and the largest publicly held personal lines carrier in the United States. The company also provides a range of life insurance and investment products to its diverse customer base. It provides insurance products to approximately 16 million households through more than 12,000 exclusive agencies and financial specialists in the United States and Canada.
The company has a long-term earnings growth expectation of 12.5% and delivered a trailing four-quarter earnings surprise of 45.3%, on average. It has a VGM Score of A. Allstate sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Arista: Santa Clara, CA-based Arista is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company holds a leadership position in 100-gigabit Ethernet switching for the high-speed datacenter segment. It is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
The company has a long-term earnings growth expectation of 22.7%. It delivered a trailing four-quarter earnings surprise of 8.9%, on average. Arista sports a Zacks Rank #1.
Ross: Based in Dublin, CA, Ross is an off-price retailer of apparel and home accessories, offering in-season, branded and designer apparel, footwear, accessories and other home-related merchandise. Operating primarily in the United States, it targets middle-income households, keeping prices generally 20% to 60% below the regular prices of most department and specialty stores.
The company has a long-term earnings growth expectation of 14.6% and delivered a trailing four-quarter earnings surprise of 11.2%, on average. Ross carries a Zacks Rank #2 at present.
Gartner: Headquartered in Stamford, CT, Gartner is reportedly the world's leading information technology research and advisory firm. The company offers rich domain expertise and technology-related insight necessary for an informed decision-making process.
Gartner has a long-term earnings growth expectation of 20.1% and delivered a trailing four-quarter earnings surprise of 13.5%, on average. Gartner sports a Zacks Rank #1.
Micron: Headquartered in Idaho, Micron is one of the leading worldwide providers of semiconductor memory solutions. Through global brands, namely Micron, Crucial and Ballistix, it manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory, NAND flash memory, NOR Flash and other technologies. Its solutions are used in leading-edge computing, consumer, networking, mobile, automotive, industrial and data center products.
The company delivered a trailing four-quarter earnings surprise of 21.1%, on average. Micron carries a Zacks Rank #2 at present.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2986421/buy-5-high-roe-stocks-as-rate-hike-fears-keep-markets-at-bay
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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Gartner, Inc. (IT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

Zacks.com featured highlights include The Allstate, Arista Networks, Ross Stores, Gartner and Micron Technology

In trading on Tuesday, shares of Gartner Inc (Symbol: IT) crossed below their 200 day moving average of $177.59, changing hands as low as $173.47 per share. Gartner Inc shares are currently trading off about 6.5% on the day. The chart below shows the one year performance of IT shares, versus its 200 day moving average:
Looking at the chart above, IT's low point in its 52 week range is $124.25 per share, with $265.8468 as the 52 week high point — that compares with a last trade of $173.85. The IT DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
Further IT Research:

Gartner Breaks Below 200-Day Moving Average - Notable for IT

After two back-to-back winning runs, the broader equity markets plunged sharply on Friday as a strong jobs report reignited fears of a probable interest rate hike in the impending Federal Reserve meeting later this month. The nonfarm payrolls report for August revealed that the U.S. economy added 162,000 jobs last month, outpacing the broad-based expectations of 53,000 job additions. In addition to a reversal of the summer slowdown in hiring, the unemployment rate held steady at 4.1%, portraying stable labor market conditions. This apparently pulled down equity markets, while bond yields surged.
Surging oil prices further strained the markets and increased concerns that elevated energy prices will drive inflation higher, leading to a likely rate hike. With a lasting peace agreement in the Middle East fading to oblivion, market uncertainty remained elevated. As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they can benefit from “cash cow” stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios, such as return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. The Allstate Corporation ALL, Arista Networks, Inc. ANET, Ross Stores, Inc. ROST, Gartner, Inc. IT and Micron Technology, Inc. MU are some of the stocks with high ROE to profit from.
Why ROE?
ROE = Net Income/Shareholders’ Equity
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.
Moreover, ROE is often used to compare the profitability of a company with other firms in the industry; the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management’s efficiency in rewarding shareholders with attractive risk-adjusted returns.
Parameters Used for Screening
In order to shortlist stocks that are cash-rich with high ROE, we have added Cash Flow greater than $1 billion and ROE greater than X-Industry as our primary screening parameters. In addition, we have taken a few other criteria into consideration to arrive at a winning strategy.
Price/Cash Flow less than X-Industry: This metric measures how much investors pay for $1 of free cash flow. A lower ratio indicates that investors need to pay less for a better cash flow-generating stock.
Return on Assets (ROA) greater than X-Industry: This metric determines how much profit a company earns for every dollar of assets, which includes cash, accounts receivable, property, equipment, inventory and furniture. The higher the ROA, the better it is for the company.
5-Year EPS Historical Growth greater than X-Industry: This criterion indicates that continued earnings momentum has translated into solid cash strength.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Here are five of the 12 stocks that qualified the screening:
Allstate: Headquartered in Northbrook, IL, Allstate is the third-largest property-casualty (P&C) insurer and the largest publicly held personal lines carrier in the United States. The company also provides a range of life insurance and investment products to its diverse customer base. It provides insurance products to approximately 16 million households through more than 12,000 exclusive agencies and financial specialists in the United States and Canada.
The company has a long-term earnings growth expectation of 12.5% and delivered a trailing four-quarter earnings surprise of 45.3%, on average. It has a VGM Score of A. Allstate sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista: Santa Clara, CA-based Arista is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company holds a leadership position in 100-gigabit Ethernet switching for the high-speed datacenter segment. It is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
The company has a long-term earnings growth expectation of 22.7%. It delivered a trailing four-quarter earnings surprise of 8.9%, on average. Arista sports a Zacks Rank #1.
Ross: Based in Dublin, CA, Ross is an off-price retailer of apparel and home accessories, offering in-season, branded and designer apparel, footwear, accessories and other home-related merchandise. Operating primarily in the United States, it targets middle-income households, keeping prices generally 20% to 60% below the regular prices of most department and specialty stores.
The company has a long-term earnings growth expectation of 14.6% and delivered a trailing four-quarter earnings surprise of 11.2%, on average. Ross carries a Zacks Rank #2 at present.
Gartner: Headquartered in Stamford, CT, Gartner is reportedly the world's leading information technology research and advisory firm. The company offers rich domain expertise and technology-related insight necessary for an informed decision-making process.
Gartner has a long-term earnings growth expectation of 20.1% and delivered a trailing four-quarter earnings surprise of 13.5%, on average. Gartner sports a Zacks Rank #1.
Micron: Headquartered in Idaho, Micron is one of the leading worldwide providers of semiconductor memory solutions. Through global brands, namely Micron, Crucial and Ballistix, it manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory, NAND flash memory, NOR Flash and other technologies. Its solutions are used in leading-edge computing, consumer, networking, mobile, automotive, industrial and data center products.
The company delivered a trailing four-quarter earnings surprise of 21.1%, on average. Micron carries a Zacks Rank #2 at present.
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Buy 5 High ROE Stocks as Rate Hike Fears Keep Markets at Bay

Key Points
Gartner reported Q2 earnings that came in far above the average Wall Street forecast.
The company's sales in the period also surpassed the average analyst target.
Gartner lowered its full-year sales target, but it increased guidance for earnings and free cash flow.
Gartner (NYSE: IT) shareholders enjoyed a month of huge gains in August. The stock moved 31.2% higher in the period, according to data from S&P Global Market Intelligence.
The broader market saw bullish momentum last month, with the S&P 500 up 2.6% and the Nasdaq Composite up 3.9%. But while the positive trading backdrop for the market at large helped support Gartner's gains, it was the company's better-than-expected second-quarter report that was the biggest catalyst.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Gartner's Q2 report helped quiet fears surrounding the stock
Gartner released its Q2 report before the market opened on Aug. 4, and the company's results and forward guidance were significantly better than expected. The research and information services specialist posted non-GAAP (adjusted) earnings per share of $4.37, exceeding the average analyst estimate by $0.64 per share.
Revenue was still down 0.6% year over year at $1.68 billion, but it beat the average analyst target by roughly $50 million. Meanwhile, sales were actually up 2.8% using the company's adjusted comparison.
Investors have been concerned that the business would face a challenging sales environment amid the rise of artificial intelligence, and there has been some evidence that the trend is pressuring demand. With indications that revenue is either stabilizing or seeing modest growth, depending on the comparison methodology, the Q2 sales performance provided some counter-indicators that these concerns may be overblown.
Perhaps even more importantly, the big earnings beat in the quarter shows that the company was able to find areas for improved operational efficiency at a time when sales growth has been harder to come by. Net income increased 14.4% year over year to $275 million, and free cash flow was up 8.9% to $378 million.
Gartner's guidance also spurred bullish sentiment
With its Q2 report, Gartner raised its guidance for full-year earnings per share from $13.25 to $14. The company also hiked its FCF target to $1.19 billion -- up from $1.16 billion. While sales guidance was revised down to roughly $6.375 billion from roughly $6.405 billion due to currency headwinds, the stronger outlook on earnings was more than enough to offset the sales forecast shift in the eyes of investors.
Gartner stock also had substantial short interest heading into the publication of its Q2 results, and the better-than-expected print for the quarter and forward guidance may have produced short covering that helped create a huge rally for its share price. The company still has to prove that it can sustain its earnings momentum, but its recent business update was reassuring given some of the concerns surrounding its outlook.
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Why Gartner Stock Skyrocketed 31.2% Last Month

Strong earnings reports often create some of the best momentum setups in the market, especially when a stock gaps sharply higher, holds those gains and then begins consolidating near its highs.
That combination can signal that investors are not simply reacting to a one-day surprise, but actively repricing the business as earnings expectations improve. When that initial move is followed by a tight continuation pattern, it can create an attractive setup for another leg higher.
Okta (OKTA), Gartner (IT) and Salesforce (CRM) each fit that profile today. All three delivered strong earnings results, gapped higher on the news and are now forming constructive technical patterns that could set the stage for fresh breakouts.
Okta Stock Builds on a Powerful Earnings Gap
Okta was one of the biggest post-earnings winners last week, with shares surging nearly 29% after the identity-security company delivered a better-than-expected quarter. Second-quarter revenue increased 11% year over year to $805 million, while subscription revenue climbed 12%. More importantly, current remaining performance obligations, a useful indicator of near-term subscription demand, accelerated 14% to $2.59 billion. Free cash flow also jumped to $227 million from $162 million a year earlier.
There is also a compelling AI angle developing around the business. As companies deploy autonomous AI agents across their operations, those agents increasingly require identities, permissions and controls just like human employees. Okta is positioning its identity platform as a critical security layer for this emerging infrastructure.
That narrative appears to be gaining traction alongside improving fundamentals. Okta currently carries a Zacks Rank #2 (Buy), and the strong quarter could provide additional support to earnings estimates.
Technically, the earnings gap was unusually powerful. Rather than immediately giving back the move, OKTA shares have held near their highs and are now pressing against resistance around $173.50. A decisive move through that level would represent a fresh breakout and could open the door to another leg higher.
On the downside, the $164 area is an important near-term support level. As long as shares remain above that zone, the post-earnings setup remains constructive.
Image Source: TradingView
Gartner Stock Sets Up Near a Breakout
Gartner offers a somewhat different setup, combining improving earnings momentum with an unusually inexpensive valuation.
The research and advisory company reported adjusted second-quarter earnings of $4.37 per share, up nearly 24% year over year and comfortably above expectations. Free cash flow increased 9% to $378 million, while management raised its full-year outlook for adjusted EBITDA, earnings and free cash flow. Gartner also repurchased $547 million of stock during the quarter.
The stock now carries a Zacks Rank #1 (Strong Buy), while valuation remains compelling. IT shares trade at just 13.8x forward earnings, despite long-term EPS expectations of roughly 20.1% annual growth, giving the stock a PEG ratio of only 0.68.
The technical setup is also increasingly constructive. Gartner shares are consolidating beneath resistance around $203, creating a well-defined breakout level. A sustained move above $203 could signal the beginning of another leg higher.
Meanwhile, the $190 area has emerged as an important support zone. That gives investors a relatively clear framework: strength above $203 confirms the breakout, while a loss of $190 would weaken the setup.
Image Source: TradingView
Salesforce Shares Show Runaway Momentum
Salesforce may be the most interesting name of the three because its earnings report directly challenged one of the market's most persistent narratives this year.
Software stocks were hit hard as investors worried that generative and agentic AI could disrupt traditional SaaS businesses. Salesforce was caught directly in that selloff. But its latest earnings report suggested AI may ultimately prove to be considerably more opportunity than threat.
Second-quarter revenue increased 11% year over year to $11.3 billion, while non-GAAP diluted EPS more than doubled to $5.90. Free cash flow surged 81% to $1.1 billion, and Salesforce raised its full-year revenue outlook. Current remaining performance obligations also accelerated to 14% growth.
Perhaps most important, the company's AI businesses are gaining substantial traction. Agentforce and Data 360 annual recurring revenue reached nearly $3.9 billion, up more than 210% year over year, while Agentforce ARR exceeded $1.5 billion and grew more than 240%.
Investors responded by sending CRM shares more than 22% higher in the following session.
Even after that move, Salesforce trades at only around 17.5x forward earnings, while long-term EPS is forecast to grow roughly 18% annually. The stock currently carries a Zacks Rank #3 (Hold), although the report is still fresh and upward estimate revisions following the quarter could potentially improve that rank.
Technically, CRM has not even produced the clean consolidation seen in OKTA and IT yet. Momentum has been so strong that shares continue to push higher following the gap.
That makes Salesforce one to watch closely. Ideally, shares would form a tight bull flag or another short consolidation that establishes a cleaner breakout level. More aggressive momentum investors may choose to participate in the runaway move, but waiting for a defined setup would provide a clearer risk-reward profile.
Image Source: TradingView
Should Investors Buy Shares in CRM, IT and OKTA?
What makes these three setups particularly interesting is that they share a broader narrative.
Okta, Gartner and Salesforce were all pressured to varying degrees by concerns that AI could disrupt established software and information-services businesses. Investors spent much of the year asking which companies AI might replace.
Recent earnings are beginning to suggest that the market may have pushed that thesis too far.
Salesforce is already generating rapidly growing AI revenue, Okta may become an increasingly important security layer for autonomous agents, and Gartner continues to produce strong earnings and cash flow despite fears surrounding AI disruption.
If investors continue to reconsider the idea that AI is inherently bearish for established software and information businesses, the rerating of these stocks may have considerably further to go.
With earnings momentum improving and technicals turning bullish, all three stocks deserve a place near the top of investors' watchlists.
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Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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This article originally published on Zacks Investment Research (zacks.com).

Gartner, Inc.

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