We recently published a list of 10 Best Stocks to Buy Now For the Long Term. In this article, we are going to take a look at where S&P Global Inc. (NYSE:SPGI) stands against other best stocks to buy now for the long term.
What’s Next for the Equity Markets?
The US equity markets have started to show signs of recovery after weeks of volatility due to the tariff situation. On March 21, J.P Morgan Management’s Global Investment Strategist, Alan Wyne released his market update noting that this was the first weekly gain after four weeks for the US equity markets. While highlighting the current market condition Wyne highlighted that this improvement follows the Federal Reserve’s decision to leave interest rates unchanged while revising growth forecasts downward and increasing near-term inflation expectations. The Fed has emphasized that tariff-related inflation is likely transitory. Futures markets anticipate two interest rate cuts this year, with a 50% chance of a third, sparking demand in Treasury markets. On the other hand, yields on the 2-year and 10-year Treasury notes dropped by 7 and 9 basis points, respectively. Moreover, European stocks have continued to outperform, supported by Germany’s new legislation exempting defense spending exceeding 1% of GDP from borrowing restrictions. Wyne suggests that this policy could unlock significant fiscal spending across the Eurozone. The Stoxx 50 index is up 0.2% for the week and has gained 11% year-to-date.
While the S&P 500 is hovering near correction territory, marking five years since its COVID-19 drawdown. Wyne noted that the risks appear evenly distributed between bullish and bearish outlooks. On one hand, the bears argue that softer economic data and rising consumer inflation expectations could worsen with tariff escalations, potentially leading to stagflation. On the other hand, bulls counter that weak sentiment data does not necessarily reflect hard economic indicators such as employment and retail sales, which remain robust. Wyne highlighted that bulls point out that long-term inflation expectations are still anchored near the Fed’s target, mitigating risks of a wage spiral. He pointed out that historically speaking, investing during sentiment troughs has yielded strong returns in subsequent months.
Lastly, closing his market outlook with some investment advice, Wyne suggests that balancing risks by maintaining strategic asset allocation might be a viable strategy. He added that investors should use equities for long-term capital appreciation and fixed income for hedging during slowdowns. In addition, tactical adjustments can help capitalize on emerging opportunities while adding resilience through assets like gold and infrastructure investments. Wyne stressed that despite market volatility since the COVID-19 drawdown, the S&P 500 has risen over 150%, which underscores the importance of staying invested through uncertainties.
Our Methodology
To curate the list of the 10 best stocks to buy now for the long term we reviewed financial media reports and blue chip ETFs. From these sources, we picked stocks from multiple sectors including financials, energy, technology, consumer staples, and more. We finally selected stocks with a history of stable operations. Additionally, we checked their 10-year revenue growth rates and only considered companies with a growth rate of at least 7%. The list is ranked in ascending order of the number of hedge funds holding each stock, sourced from Insider Monkey’s Q4 2024 database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A group of analysts studying data on a large monitor.
S&P Global Inc. (NYSE:SPGI)
10-Year Sales Growth: 10.90%
Number of Hedge Fund Holders: 99
S&P Global Inc. (NYSE:SPGI) is a leading provider of essential intelligence, offering data, analytics, benchmarks, and research across various industries. The company operates through five divisions including S&P Global Market Intelligence, S&P Global Ratings, S&P Global Commodity Insights, S&P Global Mobility, and S&P Global Mobility.
On March 12, Mizuho analyst Sean Kennedy initiated coverage on the stock with an Outperform rating and a $599 price target. Kennedy noted S&P Global Inc. (NYSE:SPGI) as one of the highest-quality businesses, based on its stable long-term growth, strong competitive advantages, and enduring pricing power. Moreover, he also highlighted that S&P Global Market Intelligence is recovering after slower growth in 2024 due to financial sector stabilization and is on track to achieve its medium-term growth target of 7% to 9% by 2026. This reflects confidence in the company’s ability to sustain growth and capitalize on market opportunities.
For the quarter ending December 31, S&P Global Inc. (NYSE:SPGI) reported growing its revenue by 14% year-over-year, driven by growth across all divisions. The Retail Segment was notable with 31% year-over-year in 2024, fueled by a record $3.9 trillion in billed issuance, a 54% increase from the prior year. Additionally, the company diversified its revenue streams beyond traditional investment-grade and high-yield debt into other loan categories and structured products. The company ranks as one of the best stocks to buy now for long term.
Montaka Global Investments stated the following regarding S&P Global Inc. (NYSE:SPGI) in its Q4 2024 investor letter:
“The broader global investing environment will also likely improve cyclically in 2025. The global monetary tightening cycle has now peaked, and we are in the early days of an easing cycle – including in the US, the Eurozone, and China (collectively representing nearly 60% of global GDP) – which will likely continue in 2025.
While there is no shortage of political upheaval around the world, in 2025 we will exit a trough of ‘political dysfunction’ in the world’s largest economy, the US (to which a majority of Montaka’s portfolio is exposed).
Political dysfunction stems from the different legislative bodies being controlled by different political parties that tend to disagree on most topics.
These collective conditions will benefit the shareholders of many businesses.
One of our major holdings, S&P Global Inc. (NYSE:SPGI), for example, which has already commenced a cyclical recovery in its Credit Ratings business, will likely see a new recovery in its Market Intelligence business as buy-side and sell-side market activity recovers…” (Click here to read the full text)
Overall, SPGI ranks 9th on our list of best stocks to buy now for the long term. While we acknowledge the potential of SPGI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SPGI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
