M&A Activity Puts Market Information Services Industry in the Spotlight
S&P Global (SPGI) announced on November 30 that it would be acquiring IHS Markit (INFO) for $44 billion. The deal is one of the two largest mergers of 2020 and it has put the market data services industry in the spotlight.
This particular merger was of major interest to me as I have S&P Global, MSCI (MSCI) and Factset Research (FDS) in my 20/2o Model Portfolio. The reason those three stocks got my attention in the first place was due to their earnings and revenue growth. If we look at the Tickeron Screener for these three stocks, all three have really good SMR Ratings. The SMR rating includes sales growth, profit margin, and return on equity—three important fundamental indicators.
The SMR rating is the only fundamental category where all three rank above average, but both MSCI and Factset Research score very well in the Valuation Rating and the Profit vs. Risk rating.
S&P Global scores poorly in its Valuation Rating and the Profit vs. Risk Rating. Those are the only two areas that are a concern for the stock though. MSCI scores poorly in the Outlook Rating while Factset Research scores poorly in its seasonality score. Between the three stocks, those are the only four areas where there is any hint of negativity.
On the technical side, there isn’t a single bearish signal among the three stocks and the seven different indicators. All 21 readings are either neutral or bullish. S&P Global and Factset Research both received bullish signals from their stochastic indicators on November 30 which I thought was interesting. Those two stocks also received bullish signals from the MACD indicators on the same date.
Another area of analysis that got my attention for the three stocks was the sentiment. None of three stocks have extremely high levels of optimism being displayed toward them and Factset Research has quite a bit of pessimism being directed toward it. Looking at the analysts’ ratings for Factset, there are 16 analysts covering the stock with nine “hold” ratings and seven “sell” ratings. Not a single analysts ranks the stock as a buy and that is hard to believe given the company’s strong fundamentals.
S&P Global has seven “buy” ratings and four “hold” ratings while MSCI has six “buy” ratings, five “hold” ratings, and one “sell” rating. Both of those buy percentages are below average.
Turning our attention to the short interest ratios, Factset Research’s ratio is above average at 4.7, while S&P Global and MSCI have short interest ratios that are slightly below the average reading.
When you compare the three companies in all categories, you can see how well they stack up against one another and how they compare to other stocks based on the fundamental and technical analysis.
SPGI in +0.59% Uptrend, advancing for three consecutive days on July 17, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where SPGI advanced for three days, in of 364 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The 50-day moving average for SPGI moved above the 200-day moving average on July 01, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
The Aroon Indicator entered an Uptrend today. In of 338 cases where SPGI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 60 cases where SPGI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on July 15, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on SPGI as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SPGI turned negative on July 15, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SPGI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. SPGI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.000) is normal, around the industry mean (5.755). P/E Ratio (51.894) is within average values for comparable stocks, (35.318). Projected Growth (PEG Ratio) (1.518) is also within normal values, averaging (2.610). Dividend Yield (0.009) settles around the average of (0.031) among similar stocks. P/S Ratio (10.893) is also within normal values, averaging (82.424).
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