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09-05-2025
- Business
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S&P Global Inc. (SPGI): Among Billionaire Chris Hohn's Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where S&P Global Inc. (NYSE:SPGI) stands against Billionaire Chris Hohn's other stock picks with huge upside potential. The Children's Investment Fund Management, also known as TCI Fund Management, is a British hedge fund firm headquartered in London and founded in 2003 by Sir Christopher Anthony Hohn. Hohn, a British billionaire and Harvard MBA graduate (Baker Scholar), also serves as the fund's portfolio manager. TCI is distinguished by its value-oriented, fundamental investment philosophy and its focus on long-term, high-conviction positions in globally competitive businesses. The fund employs a private equity-style approach to public market investing, relying on deep fundamental research, constructive engagement with company management, and a willingness to use shareholder activism when necessary to drive performance. Known for its concentrated portfolio structure, the TCI Master Fund maximizes alpha by targeting high-quality companies with sustainable competitive advantages and predictable free cash flow. TCI's investment strategy includes opportunistic ventures into corporate transformations and special situations. In line with its activist reputation, the firm is prepared to exert influence on company direction and governance when it deems necessary to unlock shareholder value. This assertive approach has helped cement TCI's reputation as one of the most successful and influential hedge funds in the world. A significant aspect of TCI's operations is its real estate lending business, which was launched in 2014 under the TCI Real Estate Partners Lending Funds. These funds invest alongside The Children's Investment Fund Foundation (CIFF), the philanthropic arm initially supported by the fund's profits. The lending strategy centers on first mortgage and senior secured lending for high-quality assets, with a particular focus on prime locations in major North American and European cities. This real estate arm reflects TCI's broader investment philosophy, seeking security, quality, and long-term value. As of Q4 2024, TCI managed $42.4 billion in securities across just nine core stock holdings, reflecting its highly concentrated and conviction-driven investment approach. The firm's blend of fundamental analysis, disciplined value investing, and strategic activism continues to position it as a powerful force in global capital markets. Through its unique alignment of investment and philanthropic missions, TCI also exemplifies how hedge funds can blend financial performance with broader societal impact. For this article, we searched through TCI Fund Management's Q4 2024 13F filings to identify billionaire Chris Hohn's stock picks with the highest upside potential. We compiled the equities with upside potential higher than 8% at the time of writing this article and analyzed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (). A group of analysts studying data on a large monitor.S&P Global Inc. (NYSE:SPGI) is a premier provider of financial information and analytics, serving institutional investors, corporations, and government entities worldwide. Headquartered in New York City, the company delivers a comprehensive suite of services spanning credit ratings, market intelligence, commodity analytics, mobility solutions, and index development, most notably the widely followed S&P index. In the first quarter of 2025, S&P Global Inc. (NYSE:SPGI) exceeded market expectations across the board. The company reported revenue of $3.78 billion, representing an 8% year-over-year increase and beating the consensus of $3.72 billion. Earnings per share came in at $4.37, outpacing the projected $4.23 and marking a 9% increase over the prior-year period. These results were driven by solid growth across its business segments, particularly in Market Intelligence and Indices, which benefited from sustained capital market activity and increasing demand for data-driven investment tools. The firm also delivered significant margin expansion, improving operating margins by 240 basis points over the trailing twelve months. This operational efficiency reflects S&P Global Inc. (NYSE:SPGI)'s disciplined cost structure and high-margin business model. Additionally, the company returned over $900 million to shareholders through a combination of dividends and share repurchases, underlining its strong capital return policy. With a diversified revenue base, recurring income streams, and robust pricing power, S&P Global Inc. (NYSE:SPGI) continues to be a strategic asset in financial services portfolios. Its strong quarterly performance reaffirms the company's position as a high-quality compounder with dependable cash flow and earnings growth. Among Hohn's portfolio, S&P Global stands out with a notable upside potential of 15.74%, positioning it as one of the top stocks with significant growth prospects. The company has also seen increasing hedge fund interest; by the end of Q4 2024, 99 hedge funds out of 1,009 tracked by Insider Monkey held stakes in the company, up from 85 funds in the previous quarter. The total value of these holdings reached $10.52 billion, indicating rising confidence among institutional investors. Overall, SPGI ranks 5th on our list of Billionaire Chris Hohn's stock picks with huge upside potential. While we acknowledge the potential of these stock picks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SPGI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . 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Yahoo
30-04-2025
- Business
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S&P Global Inc (SPGI) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Total Revenue Growth: Increased 8% year over year. Subscription Product Revenue Growth: Increased 7% year over year. Margin Expansion: Up 240 basis points on a trailing 12-month basis. Adjusted Diluted EPS Growth: Increased 9% year over year. Capital Returned to Shareholders: Over $900 million through dividends and repurchases in Q1. Organic Constant Currency Revenue Growth: 9% for the company. Sustainability and Energy Transition Revenue: Grew 20% to $93 million in the quarter. Private Markets Revenue Growth: Increased 21% year over year to $140 million. Market Intelligence Revenue Growth: Increased 5% in the first quarter. Ratings Revenue Growth: Increased 8% year over year. Commodity Insights Revenue Growth: Increased 9% year over year. Mobility Revenue Growth: Increased 9% year over year. S&P Dow Jones Indices Revenue Growth: Increased 15% year over year. Adjusted Expenses Growth: Increased 4% in the quarter. Operating Margin for Commodity Insights: Improved by 90 basis points to 48.1%. Mobility Segment Margin Improvement: Improved 40 basis points year over year to 38.5%. Indices Operating Margin: Remained unchanged at 72.9%. Guidance for Total Revenue Growth: Expected in the range of 4% to 6% for the year. Adjusted Margins Guidance: Expected in the range of 48.5% to 49.5%. Adjusted Diluted EPS Guidance: Expected in the range of $16.75 to $17.25. Warning! GuruFocus has detected 5 Warning Signs with SPGI. Release Date: April 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. S&P Global Inc (NYSE:SPGI) reported an 8% year-over-year increase in total revenue for the first quarter of 2025, with subscription products growing by 7%. The company achieved a 9% growth in adjusted diluted EPS and expanded margins by 240 basis points on a trailing 12-month basis. S&P Global Inc (NYSE:SPGI) returned over $900 million to shareholders through dividends and repurchases in the first quarter. The company announced the intent to separate its Mobility division into a standalone public company, which is expected to enhance strategic focus and shareholder value. Strong engagement with platforms was noted, with active users across Capital IQ platforms, Platts Connect, and automotiveMastermind increasing by 23% year over year. S&P Global Inc (NYSE:SPGI) expects billed issuance to be approximately flat year over year, with a decline anticipated in the second quarter. The company noted a slowing pace of decision-making in the markets, impacting the M&A environment and issuance volumes. Market volatility and geopolitical risks are creating challenges in predicting central bank actions and capital markets activity. The Ratings business faces near-term headwinds with expected declines in issuance volumes, particularly in high yields. The company anticipates lower growth in Ratings and Indices due to market-driven factors, impacting revenue guidance. Q: Why is S&P Global spinning off its Mobility division now, and what are the implications for the remaining company? A: Martina Cheung, President & CEO, explained that the decision to spin off the Mobility division into a standalone public company is based on a thorough analysis aimed at maximizing shareholder value. The separation will allow S&P Global to focus on its core businesses, while Mobility can pursue its growth strategy independently. The spin-off is expected to be tax-free and completed in 12 to 18 months. Q: Can you provide insights into the Market Intelligence division's performance and outlook for the year? A: Martina Cheung noted that Market Intelligence had a strong start to the year with stable retention rates and a robust sales pipeline. The division is expected to see revenue acceleration in the second half of the year, driven by improved customer engagement and strategic realignments in sales teams. Q: What are the key levers S&P Global is using to manage expenses amid market uncertainties? A: Eric Aboaf, CFO, highlighted that the company is closely monitoring headcount, incentive compensation, third-party spending, and investments. These levers are being adjusted as needed to maintain financial discipline and ensure profitability targets are met. Q: How is S&P Global addressing the challenges in the Ratings division, particularly with flat issuance expectations? A: Martina Cheung stated that the Ratings division expects non-transaction revenue to grow mid-single digits, while transaction revenue may face challenges due to market volatility. The company is cautious but sees potential upside if market conditions improve. Q: What is the impact of the OSTTRA sale on S&P Global's financials and capital allocation strategy? A: Eric Aboaf mentioned that the OSTTRA sale will generate approximately $1.4 billion in after-tax proceeds, which will be used for additional share repurchases. This is factored into the company's guidance, supporting its capital return strategy. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
15-04-2025
- Business
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S&P Global Inc. (SPGI): One of the High Growth Forever Dividend Stocks to Invest In
We recently published a list of the . In this article, we are going to take a look at where S&P Global Inc. (NYSE:SPGI) stands against other high growth forever dividend stocks. Dividend stocks have trailed the broader market over the past two years, largely due to investors favoring AI-focused companies. Still, experienced investors recognize the long-term value of dividend-paying stocks, supported by their strong historical performance. Short-term trends don't diminish their importance. In fact, dividends have historically played a major role in total returns, accounting for about 31% of the broader market's monthly total return from 1926 through February 2025, according to S&P Dow Jones Indices. Dividend stocks have been performing well this year, even as broader markets faced turbulence. Wall Street took a hit recently amid rising fears about the economic fallout from President Donald Trump's expanding trade war. The three major US indexes posted sharp declines, wiping out much of the prior session's gains, as escalating tensions between the US and China overshadowed positive economic reports and progress in trade talks with Europe. The S&P index is down by over 8% since the start of 2025, whereas the tech-heavy NASDAQ has declined by over 13%. On the other hand, the Dividend Aristocrats Index, which tracks the performance of companies with 25 consecutive years of dividend growth, has recorded a decline of nearly 3%. This highlights how dividend stocks tend to perform more steadily during market downturns—a trend backed by historical data. S&P Dow Jones Indices reports that, over time, the Dividend Aristocrats have delivered stronger risk-adjusted returns than the broader market, with lower volatility. These stocks have offered solid downside protection, outperforming the S&P index in about two-thirds of the market's down months and roughly 44% of its up months. They've also experienced smaller drawdowns compared to the overall index, reinforcing their defensive appeal. In addition, during market downturns, the Dividend Aristocrats delivered an average excess return of 0.87% over the broader market. From December 29, 1989, to February 28, 2025, these stocks showed a market beta of 0.8, indicating lower volatility and stronger resilience compared to the overall market. Analysts pointed out that the historical performance of dividend equities continues to shape a favorable outlook for the current year. A recent report from J.P. Morgan suggested that global equities may be entering a strong phase of dividend growth—driven not only by a cyclical rebound in payouts but also by a sustained structural momentum. While global dividends per share have grown at an average annual rate of 5.6% over the past two decades, projections now indicate an acceleration to 7.6% in the coming years. The report emphasized that the most promising opportunities in the dividend space lie with so-called 'Compounders'—companies with a consistent track record of increasing dividends over time, backed by solid earnings growth. Nearly half of the strategy focuses on these firms, which are also seen as powerful contributors to alpha generation within investment portfolios. Given this, we will take a look at some of the best high growth stocks that pay dividends. A group of analysts studying data on a large monitor. For this list, we screened for dividend stocks with sound financials and robust balance sheets. From that group, we picked companies that achieved positive revenue growth in the past five years and dividend growth streaks of at least 10 years. The final 10 picks are those with a five-year revenue growth rate exceeding 5%. The stocks are ranked in ascending order of their revenue growth rates. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). 5-Year Revenue Growth: 16.23% S&P Global Inc. (NYSE:SPGI), a US-based capital markets firm specializing in financial analytics and information services, delivered solid results in the fourth quarter of 2024. The company posted a 14% year-over-year increase in revenue, while adjusted earnings per share rose by 20% to $3.77. Management also lifted investor confidence by issuing an upbeat outlook for the year ahead and announcing a new share repurchase program. A key highlight was the Ratings division, which saw a 31% jump in revenue, fueled by stronger activity across investment-grade and high-yield bonds, as well as loans and structured finance instruments—diversifying the company's earnings sources. S&P Global Inc. (NYSE:SPGI) benefits from a subscription-based model, with over 75% of its revenue coming from recurring streams. This setup helps buffer its performance against fluctuations in the broader debt markets, where the Ratings business is a cornerstone. In addition, its Market Intelligence segment, alongside the Indices and Commodity Insights divisions, contributes to steady, dependable income. S&P Global Inc. (NYSE:SPGI) also displayed robust financials, with operating cash flow reaching $5.7 billion in 2024, up from $3.7 billion a year earlier. Free cash flow rose to $5.27 billion, compared to $3.2 billion in 2023. This allowed the company to return $1.1 billion to shareholders via dividends. It pays a quarterly dividend of $0.96 per share, yielding 0.83%, as of April 13. The company has grown its dividend for 53 consecutive years. Overall, SPGI ranks 2nd on our list of the best high growth stocks that pay dividends. While we acknowledge the potential of SPGI as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than SPGI but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
Yahoo
13-04-2025
- Business
- Yahoo
Is S&P Global (SPGI) the Best Stock for 15 Years?
We recently published a list of . In this article, we are going to take a look at where S&P Global Inc. (NYSE:SPGI) stands against other best stocks for 15 years. Russell Investments believes that 3 features are defining the market outlook for 2025. These include the elevated level of the S&P 500 forward P/E ratio, the potential for further US dollar strength, as well as the direction of the US 10-year Treasury yield. The active equity managers have been challenged by the severe market concentration. The firm opines that a flattening out of such trends— which can be seen due to policy shifts or change in sentiments related to earnings growth and valuations for mega caps — can support active manager outperformance. Russell Investments remains focused on sectors in which AI adoption has been ramping up, including industrials, healthcare, and consumer goods. As per the firm, companies that leverage AI for productivity improvements remain well-placed to gain a lasting competitive edge and provide healthy returns. Therefore, skilled active managers are required to look for such companies, primarily those that are in less-covered segments of the market. READ ALSO: and . With respect to real assets, Russell Investments sees attractive investment opportunities in real estate and infrastructure, mainly sectors that can benefit from the stabilization of long-term interest rates and favorable relative valuations in comparison to other growth assets. The application of AI in real estate, like data centers and healthcare facilities, continues to emerge as a critical growth area. Furthermore, the infrastructure investments continue to gain momentum from energy utilities and pipeline exposures, given the US administration's emphasis on expanding LNG (liquified natural gas) production. The firm also believes that an early focus on deregulation and tax cuts would likely be well-received by equity investors. Overall, an expected US soft landing, together with anticipated policy moderation on trade and immigration, creates specific opportunities for well-positioned portfolios, says Russell Investments. We sifted through the holdings of iShares Core S&P 500 ETF and shortlisted the companies that have 10-year revenue growth of over ~10%. Next, we selected stocks that were the most popular among elite hedge funds. We have ranked the stocks in ascending order of hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A group of analysts studying data on a large monitor. S&P Global Inc. (NYSE:SPGI) offers data and benchmarks to capital and commodity market participants. Morgan Stanley analyst Toni Kaplan has maintained the bullish stance on the company's stock, providing a 'Buy' rating on April 4. The analyst's rating is backed by factors highlighting current market conditions and future expectations for the company. Despite a softer credit issuance environment, the analyst opines that S&P Global Inc. (NYSE:SPGI)'s strategic positioning and pricing power are expected to support its growth. Its ability to maintain a positive revenue trajectory, even during the challenging macroeconomic conditions, highlights the potential for long-term value creation, says the analyst. Overall, the decision to maintain an 'Overweight' rating on S&P Global Inc. (NYSE:SPGI)'s stock stems from its healthy market position as well as the expectation that it will continue to capitalize on its strengths amidst the evolving financial landscape. Elsewhere, analyst Jeffrey Silber of BMO Capital maintained a 'Buy' rating on S&P Global Inc. (NYSE:SPGI)'s stock and retained a price objective of $590.00. Silber opines that the company's diversified portfolio, aided by the merger with IHS Markit, cements its market position and reduces its dependency on debt issuance, which makes the company's stock an attractive investment opportunity. Montaka Global Investments, an investment management company, released Q4 2024 investor letter. is what the fund said: 'The broader global investing environment will also likely improve cyclically in 2025. The global monetary tightening cycle has now peaked, and we are in the early days of an easing cycle – including in the US, the Eurozone, and China (collectively representing nearly 60% of global GDP) – which will likely continue in 2025. Overall, SPGI ranks 11th on our list of best stocks for 15 years. While we acknowledge the potential of SPGI as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than SPGI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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Yahoo
09-04-2025
- Business
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S&P Global Inc. (SPGI): One of the High Growth Dividend Paying Stocks to Invest in
We recently published a list of the 10 High Growth Dividend Paying Stocks to Invest in. In this article, we are going to take a look at where S&P Global Inc. (NYSE:SPGI) stands against other profitable dividend stocks. Amid growing concerns about economic growth and President Trump's tariffs, investors have been seeking safer investment options. In this environment, dividend stocks have gained significant traction, offering a defensive strategy while also providing steady passive income. Research from Ned Davis suggested that the tougher conditions facing the broader market this year could set the stage for dividend-paying stocks to perform well. The S&P Dividend Aristocrats Index, though it declined by over 8% in 2025 so far, is outperforming the wider market, which has fallen by more than 15% since the start of the year. Ned Davis's Clissold and his team made the following comment about dividend investing in this environment: 'One would expect that companies that pay dividends are more stable and have lower growth rates. As a result, they should rally less in up markets and decline less in down markets. In other words, they have lower betas than non-dividend-payers. … As a group, dividend-payers have a beta of 0.99 versus 1.11 for nonpayers.' Over the years, dividend stocks have proved their mettle because of strong balance sheets, stable businesses, and sound financials. These traits become even when important when the market is going through a rough stretch. Franklin Templeton noted that dividend-paying stocks are attractive because they help cushion market downturns while still offering strong growth potential. Over time and across different regions, dividend strategies have shown defensive characteristics. The report highlighted that from January 2022 through December 2024, these stocks experienced lower volatility and smaller declines than the broader market, whether looking globally, in the US, or across Europe. Notably, when concerns over inflation and rising interest rates flared up again in August, dividend stocks remained relatively resilient. Considering the growing investor appetite for dividend stocks, more and more companies have initiated their dividend policy in recent times. Tech companies, which are usually associated with growth-oriented strategies, have also broached this territory and launched their dividends last year. They see dividends as a useful addition to share repurchase programs. While tech stocks currently offer relatively low dividend yields, the overall payouts are quite large—with J.P. Morgan projecting that just three major companies alone could return around $17 billion to shareholders over the coming year. This trend marks an important development in the market. According to the report, the most promising dividend investments lie in 'Compounders'—companies known for steadily raising their dividends over time. These firms, which make up nearly half of the strategy, are backed by consistent earnings growth. They not only offer dependable income but also form a strong base for achieving long-term outperformance in investment portfolios. Given this, we will take a look at some of the best high growth stocks that pay dividends. A group of analysts studying data on a large monitor. For this list, we screened for dividend stocks with sound financials and robust balance sheets. From that group, we picked companies that achieved positive revenue growth in the past five years. The final 10 picks are those with a five-year revenue growth rate exceeding 10%. The stocks are ranked in ascending order of their revenue growth rates. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). 5-Year Revenue Growth: 16.23% S&P Global Inc. (NYSE:SPGI) is an American capital market company that mainly offers services in financial information and analytics. In the fourth quarter of 2024, the company reported a 14% rise in revenue compared to the same period last year, while adjusted earnings per share grew 20% to $3.77. It further boosted investor sentiment with a positive forecast for the coming year and unveiled a fresh share buyback initiative. Revenue from the Ratings division jumped 31% year-over-year, driven by increased activity not just in traditional investment-grade and high-yield bonds but also in other loan segments and structured finance products—broadening the company's revenue mix. S&P Global Inc. (NYSE:SPGI) generates a significant portion of its earnings through subscriptions, with more than 75% of its revenue coming from recurring sources. This model provides a cushion against market fluctuations, especially in the debt issuance sector, where the credit ratings arm plays a central role. Meanwhile, its Market Intelligence division, which offers financial analytics and data, along with the Indices and Commodity Insights businesses, add to the company's reliable revenue stream. S&P Global Inc. (NYSE:SPGI) also demonstrated a strong cash position. For full-year 2024, operating cash flow climbed to $5.7 billion, up from $3.7 billion in 2023, while free cash flow increased to $5.27 billion from $3.2 billion the year before. This financial strength allowed it to return $1.1 billion to shareholders through dividends. Currently, it offers a quarterly dividend of $0.96 per share for a dividend yield of 0.86%, as of April 8. The company maintains a 53-year streak of dividend growth. Overall, SPGI ranks 4th on our list of the best high growth stocks that pay dividends. While we acknowledge the potential of SPGI as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than SPGI but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Sign in to access your portfolio
