Rick Pendergraft's Avatar
published in Blogs
Nov 30, 2020

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.

Related Tickers: SPGI
Sergey Savastiouk's Avatar
published in Blogs
Mar 14, 2023
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Dmitry Perepelkin's Avatar
published in Blogs
Mar 14, 2023
5 Habits that Lead to Successful Investing

5 Habits that Lead to Successful Investing

To consistently make money in this industry, you need emotional fortitude, an analytical mind, and a willingness to self-reflect. Despite trading and investing being two different activities, these principles can be applied to both.Conversely, investors with good habits often become great traders.  Rather than full sentences for titles, we’ve labeled each of our top-five investing habits using a single word principle.
Sergey Savastiouk's Avatar
published in Blogs
Mar 13, 2023
4 Tips for Fast, Effective Stock Analysis

4 Tips for Fast, Effective Stock Analysis

With just a few clicks, an investor can search for individual stocks, categories of stocks, sectors, or investment themes, and then he or she can conduct a full range of technical and fundamental analysis within seconds.All powered by Artificial Intelligence.  Below, we give you 5 tips for fast, effective stock analysis using Tickeron’s Screener.
Sergey Savastiouk's Avatar
published in Blogs
Mar 15, 2023
The five most important Lessons Learned After 10,000 hours of Trading
Edward Flores's Avatar
published in Blogs
Mar 12, 2023
What's the Difference Between Tokens and Altcoins?

What's the Difference Between Tokens and Altcoins?

Between their inherently technical nature, multiple varieties and sub-varieties, and endless terminology, cryptocurrency (defined here as digital or virtual currencies that are encrypted using cryptography, powered by the immutable digital ledger known as the blockchain) represents a whole, complex world.All altcoins possess their own blockchain, independent from their source code, that records all transactions of their native coins. Many altcoins are variants, or forks, of Bitcoin that leverage that cryptocurrency’s open-source protocol as the basis.
Edward Flores's Avatar
published in Blogs
Mar 15, 2023
4 Ways to Save for Retirement Without a 401(k)

4 Ways to Save for Retirement Without a 401(k)

401(k) plans are attractive savings options for good reasons: tax breaks, potential employer matching, and access to growth investments.Roth IRA contributions are made in after-tax dollars, and withdrawals for account owners age 59 ½ or older are tax free (if the account is at least five years old). Investors with an individual adjusted gross income below $32,000 can even claim between 10 and 50 percent of contributions as a saver’s tax credit.
Sarah Patel's Avatar
published in Blogs
Mar 22, 2022
Nike (NKE, $130.03) beats fiscal Q3 earnings expectations
Sergey Savastiouk's Avatar
published in Blogs
Mar 16, 2023
Artificial Intelligence for Language Translation?

Artificial Intelligence for Language Translation?

Some use cases – predicting earthquakes, recognizing objects, and comparing medical scans, for example – offer tantalizing glimpses of a promising future.Now, MIT researchers have announced an “unsupervised” language translation model whose early returns signal a future with “faster, more efficient computer-based translations of far more languages.” Most widely-used translation programs (like Google’s) learn via models.
Lester Daniels's Avatar
published in Blogs
Mar 15, 2023
How Artificial Intelligence Can Boost your Trading Results
Sergey Savastiouk's Avatar
published in Blogs
Mar 12, 2023
What Are You Watching Nowadays?

What Are You Watching Nowadays?

So, I decided to set up my priorities straight (yes, I know – this is not New Year’s resolution). 1.Trade Wars. Important, but I stopped watching daily announcements.