We recently published a list of Long-Term Stock Portfolio: 15 Best Stocks for 15 Years. In this article, we are going to take a look at where S&P Global Inc. (NYSE:SPGI) stands against other best stocks for 15 years.
Russell Investments believes that 3 features are defining the market outlook for 2025. These include the elevated level of the S&P 500 forward P/E ratio, the potential for further US dollar strength, as well as the direction of the US 10-year Treasury yield. The active equity managers have been challenged by the severe market concentration. The firm opines that a flattening out of such trends— which can be seen due to policy shifts or change in sentiments related to earnings growth and valuations for mega caps — can support active manager outperformance.
Russell Investments remains focused on sectors in which AI adoption has been ramping up, including industrials, healthcare, and consumer goods. As per the firm, companies that leverage AI for productivity improvements remain well-placed to gain a lasting competitive edge and provide healthy returns. Therefore, skilled active managers are required to look for such companies, primarily those that are in less-covered segments of the market.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Sectors Providing Investment Opportunities
With respect to real assets, Russell Investments sees attractive investment opportunities in real estate and infrastructure, mainly sectors that can benefit from the stabilization of long-term interest rates and favorable relative valuations in comparison to other growth assets. The application of AI in real estate, like data centers and healthcare facilities, continues to emerge as a critical growth area. Furthermore, the infrastructure investments continue to gain momentum from energy utilities and pipeline exposures, given the US administration’s emphasis on expanding LNG (liquified natural gas) production.
The firm also believes that an early focus on deregulation and tax cuts would likely be well-received by equity investors. Overall, an expected US soft landing, together with anticipated policy moderation on trade and immigration, creates specific opportunities for well-positioned portfolios, says Russell Investments.
Our Methodology
We sifted through the holdings of iShares Core S&P 500 ETF and shortlisted the companies that have 10-year revenue growth of over ~10%. Next, we selected stocks that were the most popular among elite hedge funds. We have ranked the stocks in ascending order of hedge fund sentiment.
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 Revenue Growth: ~10.9%
Number of Hedge Fund Holders: 99
S&P Global Inc. (NYSE:SPGI) offers data and benchmarks to capital and commodity market participants. Morgan Stanley analyst Toni Kaplan has maintained the bullish stance on the company’s stock, providing a “Buy” rating on April 4. The analyst’s rating is backed by factors highlighting current market conditions and future expectations for the company. Despite a softer credit issuance environment, the analyst opines that S&P Global Inc. (NYSE:SPGI)’s strategic positioning and pricing power are expected to support its growth. Its ability to maintain a positive revenue trajectory, even during the challenging macroeconomic conditions, highlights the potential for long-term value creation, says the analyst.
Overall, the decision to maintain an ‘Overweight’ rating on S&P Global Inc. (NYSE:SPGI)’s stock stems from its healthy market position as well as the expectation that it will continue to capitalize on its strengths amidst the evolving financial landscape. Elsewhere, analyst Jeffrey Silber of BMO Capital maintained a “Buy” rating on S&P Global Inc. (NYSE:SPGI)’s stock and retained a price objective of $590.00. Silber opines that the company’s diversified portfolio, aided by the merger with IHS Markit, cements its market position and reduces its dependency on debt issuance, which makes the company’s stock an attractive investment opportunity.
Montaka Global Investments, an investment management company, released Q4 2024 investor letter. Here is what the fund said:
“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 11th on our list of best stocks for 15 years. While we acknowledge the potential of SPGI as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than SPGI but that trades at less than 5 times its earnings, check out our report about this 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.
