10 Best Financial Stocks To Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 97

S&P Global Inc. (NYSE:SPGI) ranks second on our list of 10 Best Financial Stocks To Buy According to Hedge Funds. During Q1, 2024 the count of hedge funds holding positions in S&P Global Inc. (NYSE:SPGI) rose to 97 from 82 in the prior quarter, as reported by Insider Monkey’s database encompassing 920 hedge funds. These holdings collectively amount to around $9.57 billion. Chris Hohn’s TCI Fund Management emerged as the leading shareholder among these hedge funds during this timeframe. On April 18, Stifel analyst Shlomo Rosenbaum reiterated a “Buy” rating for S&P Global Inc. (NYSE:SPGI) but lowered the price target from $460 to $442.

The London Stock Exchange Group and S&P Global Inc. (NYSE:SPGI) are reportedly among the contenders interested in acquiring data provider Preqin, reported Reuters. The owners of Preqin, which specializes in private equity industry data, are exploring options that include a potential full sale of the business. Goldman Sachs is advising on the sale process, which is currently in its second round. Analysts involved estimate that the sale could fetch over $2 billion, although specifics remain confidential.

Baron Durable Advantage Fund stated the following regarding S&P Global Inc. (NYSE:SPGI) in its first quarter 2024 investor letter:

“Shares of rating agency and data provider S&P Global Inc. (NYSE:SPGI) declined 3.1% during the quarter after the company provided financial guidance that missed Street expectations. While S&P guided to solid organic revenue growth of 7% to 9% and EPS growth of 9% to 11%, projected margin expansion fell short of investor estimates, which underestimated the correlation between improving top-line trends and variable employee comp (which is rising as a result). We are not concerned with this short-term dynamic that is the outcome of improving business fundamentals. S&P reported solid results for the most recent quarter, with 11% organic revenue growth, 23% EPS growth, and broad-based strength across the company’s business segments. Ratings growth was especially robust as debt issuance rebounded amid improving market conditions. Positive momentum has continued into 2024, with 66% issuance growth in January and February. We continue to own the stock due to the company’s durable growth characteristics and significant competitive advantages.”