IT Should I Buy
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Gartner Inc (IT) is not a good buy at this moment for a beginner investor with a long-term strategy. The stock is currently in a bearish trend, with weak technical indicators, declining financial performance, and negative sentiment from analysts and recent news. While the stock is oversold, there are no strong positive catalysts or trading signals to suggest a reversal in the near term.
The technical indicators for IT are bearish. The MACD histogram is negative and contracting (-4.434), RSI is at 19.096 indicating oversold conditions, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 144.89, with resistance levels at 173.689 and 202.488.
The RSI indicates oversold conditions, which could suggest a potential rebound in the short term. The company has been actively repurchasing shares, which may provide some support to the stock price.
The company missed on Q4 contract value, with management highlighting a challenging selling environment. Analysts have significantly lowered price targets, citing disappointing guidance and muted contract value growth. News of SEC investigation and a 20% drop in share price following earnings further weigh on sentiment. Broader industry concerns about AI affecting demand for existing products add additional headwinds.
In Q4 2025, Gartner's revenue increased by 2.19% YoY to $1.75 billion, but net income dropped by 39.26% YoY to $242.1 million. EPS declined by 34.25% YoY to 3.36. Gross margin improved slightly to 64.6%, up 1.75% YoY. Overall, financial performance shows declining profitability despite modest revenue growth.
Analysts have broadly lowered price targets for Gartner, with the most recent ratings ranging from $170 to $240. The consensus reflects concerns over muted contract value growth, challenging selling conditions, and disappointing guidance. Ratings include Buy, Hold, and Neutral, with no strong consensus on a positive outlook.
