10 Best Financial Services Stocks To Buy According to Analysts

3. S&P Global Inc. (NYSE:SPGI)

Upside Potential as of January 9: 17.74%

S&P Global Inc. (NYSE:SPGI) provides statistics and benchmarks to participants in the capital and commodity markets. Its ratings division is the largest credit rating company in the world and S&P’s largest segment in terms of profitability. The main revenue section of S&P is market intelligence, which primarily serves the financial services industry with desktop, data, and advisory solutions, enterprise solutions, and credit/risk solutions. The company’s other divisions include commodity insights (Platts and other data), mobility (Carfax), and indexes.

S&P Global Inc. (NYSE:SPGI) has also recently introduced ChatAI and incorporated generative AI as part of its emphasis on technical innovation. Through strategic moves like the acquisition of Visible Alpha and PrimeOne, the company has also strengthened its key strengths and expanded its portfolio. Since the start of 2024, the stock has increased by almost 14%, placing it among the Best Financial Stocks.

For the third quarter of 2024, S&P Global Inc. (NYSE:SPGI) reported sales of $3.6 billion, a 16% increase over the same period the year before. The company’s data and analytics section generates steady cash flow, which is another advantage of its ratings business. The company’s operating cash flow has increased significantly from $2.4 billion during the same period last year to over $4 billion as of right now. S&P Global Inc. (NYSE:SPGI) has raised dividends for 52 years in a row.

Aristotle Atlantic Partners, LLC highlighted S&P Global Inc. (NYSE:SPGI)’s strong performance in its Q3 2024 investor letter. Here is what the firm has to say:

“S&P Global Inc. (NYSE:SPGI) contributed to portfolio performance in the third quarter, driven by growth in corporate bond issuance and refinancing activity, with expectations for further acceleration if interest rates decline. The company has also achieved better-than-expected expense and revenue synergies from its acquisition of IHS Markit.”

Morgan Stanley increased its price target for S&P Global Inc. (NYSE:SPGI) from $570 to $595 on December 12, 2024. The company claims that it favors stocks in the business and education services markets, where it anticipates faster growth that is not yet represented in valuation, due to the possibility of better consumer credit and recovering capital markets in 2025.

Chris Hohn’s TCI Fund Management was the largest stakeholder in the company among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 10.40 million shares worth $5.37 billion as of Q3.