4. S&P Global Inc. (NYSE:SPGI)
TTM Net Income: $3.32 Billion
5-Year Net Income CAGR: 11.00%
Number of Hedge Fund Holders: 90
S&P Global Inc. (NYSE:SPGI) is a leading provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity, and automotive markets. With its vast resources and expertise, the company helps businesses, governments, and investors navigate through complex economic landscapes.
The company is actively enhancing its offerings, particularly through its S&P Capital IQ Pro platform. The June update included significant improvements such as new benchmarks and commodity insights, along with the deployment of generative AI capabilities.
The company launched ChatAI on the Platts Connect platform, which combines extensive data and insights to support global commodity markets. Additionally, S&P Global Inc. (NYSE:SPGI) has optimized its portfolio by closing deals like the acquisition of Visible Alpha and the planned divestment of its Fincentric business. With a focus on innovation, the company continues to develop tools that enhance user experience, such as the S&P Spark Assist platform, now utilized by around 14,000 of the company’s employees.
S&P Global Inc. (NYSE:SPGI) is a strong investment choice due to its dominant position in the financial information and analytics sector. As one of the largest credit rating agencies globally, the company benefits from significant pricing power, making it a reliable source of revenue. The company’s diverse offerings, including market intelligence and commodity insights, allow it to serve a wide range of clients in various industries, ensuring steady demand for its services.
The company reported strong financial results for the second quarter of 2024, achieving a record revenue of $3.5 billion, which is a 14% increase from the same quarter in the previous year. Three of its five divisions saw double-digit growth in both revenue and operating profit. Adjusted diluted earnings per share rose by 30% to $4.04, driven by revenue growth and a margin expansion of 450 basis points.
In the Private Market Solutions segment, revenue surged by 26% to $134 million, fueled by increased demand for debt, bank loans, and CLO ratings, as well as market intelligence products like Qval and iLEVEL.
Over the last five years, S&P Global Inc. (NYSE:SPGI) has achieved a compound annual growth rate (CAGR) of 15.87% in revenue and 11.00% in net income. With a solid track record of revenue growth and profitability, the company is well-positioned to continue thriving. Its commitment to innovation and expansion in areas like data analytics further enhances its competitive edge. The company’s essential role in providing critical financial insights is expected to drive sustained growth as global markets evolve.
According to Insider Monkey’s database, 90 hedge funds held stakes in S&P Global Inc. (NYSE:SPGI) in the second quarter of 2024. This brings SPGI to the 4th spot on our list of the 8 most profitable large-cap stocks to invest in.
