S&P Global (SPGI): Dividend King with Valuation Edge
"Quality stock number three, which is going to be S&P Global, stock ticker SPGI. When talking about quality, it doesn't get much more high quality in the financial sector than S&P Global. Analysts rate the stock a strong buy with an average 12-month price target of $612 per share, implying more than 20% upside from current levels. With its dividend growth streak spanning over 50 consecutive years and a solid earnings model, it offers a compelling proposition in a slow-rallied market."
The speaker presents S&P Global (ticker SPGI) as a high-quality financial play, accentuating its long-term dividend growth, strong buy rating, and an attractive 12‐month price target of 612, backed by strong pricing power in its ratings business.
S&P Global (SPGI) Correction Buying Opportunity
"And that leads us to stock number four, which is going to be S&P Global, stock ticker SPGI. The company currently has a market cap of $151 billion. Over the past 12 months, shares are up 3% and year-to-date, they're pretty flat, up just 1%. However, when it comes to S&P Global, shares are in a correction of their own, down 14% from their recent 52-week high. Regardless of which company you're looking at, it's always important to look under the hood. This is a high-quality company with a great management team, a strong balance sheet, and growing financial results. At the end of October, the company reported a double beat while also increasing its full-year guidance. Analysts rate the stock a buy with an average 12-month price target of $612 per share, implying over 20% upside from current levels."
The speaker identifies S&P Global as an attractive buy despite a 14% drop from its 52-week high. He emphasizes the company's strong management, balance sheet, and recent double beat in earnings, with a buy rating backed by a 12-month price target hinting at over 20% upside.
Buy S&P Global at Attractive Valuation Amid Sell-Off
"The first one is a company in my financial category. The stock price is now below $500 per share and, trading at a 27 forward PE with a free cash flow yield of around 3.6%, it is one of the lowest valuations the company has seen."
S&P Global is trading at a historically attractive valuation with healthy free cash flow yields and a sell-off that has left it undervalued. The speaker indicates it represents a good entry point for investors amidst a broadly elevated market.