Will Gartner (IT) be Able to Manage the Current Challenges?

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund (Class I) decreased 4.15% compared to the 3.40% decrease for the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Madison Mid Cap Fund highlighted stocks such as Gartner, Inc. (NYSE:IT). Established in 1979, Gartner, Inc. (NYSE:IT) is a research and advisory company that operates through research, conferences, and consulting segments. The one-month return of Gartner, Inc. (NYSE:IT) was -5.09%, and its shares lost 11.09% of their value over the last 52 weeks. On April 22, 2025, Gartner, Inc. (NYSE:IT) stock closed at $400.31 per share with a market capitalization of $30.951 billion.

Madison Mid Cap Fund stated the following regarding Gartner, Inc. (NYSE:IT) in its Q1 2025 investor letter:

“The bottom five detractors for the quarter were Ross Stores, Gartner, Inc. (NYSE:IT), MKS Instruments, Arista Networks, and Thor Industries. Gartner underperformed as concerns arose regarding possible subscription cancellations from the US Federal government as a result of broad cost cutting measures. While some lost business does seem likely, Gartner’s overall exposure here is limited and this headwind appears manageable.”

Gartner, Inc. (NYSE:IT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Gartner, Inc. (NYSE:IT) at the end of the fourth quarter which was 35 in the previous quarter. Gartner, Inc.’s (NYSE:IT) fourth quarter revenue was $1.7 billion, representing an 8% year-over-year increase. While we acknowledge the potential of Gartner, Inc. (NYSE:IT) 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 timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered Gartner, Inc. (NYSE:IT) and shared the list of best WallStreet bets stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.