Here is a company with strong fundamentals that trades at around 410$ and 25 P/E, below its historic average PE which is closer to 35. It is growing its revenue and profit margins and is actively investing and acquiring businesses (Kensho Technologies, With intelligence) to combat the fears of AI disrupting their business.
They have significant moats in their business such as the credit ratings, stock indexes, energy indexes/prices. They are also increasing revenue and margins from their market intelligence department which is perhaps the one people fear the most will get disrupted by AI.
They did post softer guidance for the rest of the year from last earnings report which is why the stock fell afterwards. Factors that may push the stock down in the near term is the continued energy crisis, rate hikes and bond yields rising. So the biggest risk is most surely short term, how much more could it keep falling? Any thoughts?
If you look further ahead after the current crisis. The stock has almost unanimous Buy or Strong buy recommendations with a target price over 500$. What do you think of the stock both short term and long term?
I am still new to investing so I apologize for any errors. Just wanted to hear your thoughts on this stock. Interestingly enough it is a ubiquitous company that is used in so many things in the investing world but I have not found much discussions or even articles about the actual stock, only a few.