Why Hold Strategy Is Apt For IHS Markit (INFO) Right Now
Zacks Investment Research | Feb 05, 2019 09:41PM ET
IHS Markit Ltd. (NASDAQ:INFO) is currently benefiting from a diversified global consumer base and strong recurring revenues.
Shares of the company have improved 14% in the past year compared with 8% rise of the IHS Markit Ltd. Quote
Acquisitions Expanding Offerings
Acquisitions are enabling the company to expand offerings and strengthen its international footprint. IHS Markit made three acquisitions in 2018 — Ipreo, DeriveXperts and PetroChem Wire. While DeriveXperts enhances the company’s derivatives data and valuations products, PetroChem Wire complements its OPIS product offerings. Ipreo is aimed at boosting the Financial services segment.
Wrapping up
Although IHS Markit is riding on growth prospects, it is not free from overhangs. The company experiences high acquisition-related costs. Costs might escalate further as it plans to make significant investments in automotive, energy and financial services. Nevertheless, we believe that solid recurring revenue generation capacity, strong global customer base and acquisitions bode well for the company.
Zacks Rank & Stocks to Consider
Currently, IHS Markit carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader Original post
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