Stock Analysis | Gartner Outlook - Bearish Technicals and Mixed Analyst Ratings Signal Caution

Market Snapshot: Price Declines Amid Weak Technicals

Takeaway: Gartner (IT.N) is currently in a clear downtrend, down -29.11% recently, with weak technical indicators and mixed analyst sentiment suggesting caution for investors.

News Highlights: A Diverse Range of Developments

• May 31: Reliable Data Services reported strong sales growth in its latest quarter, highlighting concerns about rising costs but showing improved profitability. While not directly related to Gartner, this signals broader sector trends of cautious optimism amid cost pressures.
• May 30: Outpace SEO announced new SEO services for the home services industry, showing digital innovation that could indirectly benefit Gartner’s IT and services clients.
• May 29: US HHS announced significant changes to how COVID-19 vaccines are approved, which may impact public health IT systems and could influence demand for Gartner’s advisory services in the public sector.

Analyst Views & Fundamentals: Mixed Signals from Analysts

Analysts remain divided on Gartner. The simple average rating is 3.12, while the performance-weighted rating is 2.72, indicating a bearish tilt when considering historical accuracy. The price has been falling, and this matches the weighted expectations, suggesting market neutrality in sentiment.

Key Analysts and Their Ratings

• Barclays (80.0% historical win rate): Rated “Buy” on 2025-08-06.
• Wells Fargo (57.1% historical win rate): Rated “Sell” on 2025-08-06 and 2025-07-18.
• Goldman Sachs (50.0% historical win rate): Rated “Strong Buy” on 2025-08-06.

Fundamental Factor Summary

• Price-to-Book (PB): 4.01 (score: 3 – internal diagnostic score)
• Return on Assets (ROA): 2.89% (score: 2)
• EV/EBIT: 64.96 (score: 2)
• Interest Coverage Ratio (%): 24.19% (score: 0)
• Operating Cycle: 82.70 days (score: 1)
• Inventory Turnover Days: 203.43 days (score: 1)
• Cash-Up: 19.78% (score: 2)

Money-Flow Trends: Outflows Across All Investor Tiers

Gartner has seen consistent outflows across all investor tiers. The fund flow score is 7.7 (good), but the overall trend is negative. Here's the breakdown:

• Small investors – inflow ratio: 49.5%
• Medium investors – inflow ratio: 49.1%
• Large investors – inflow ratio: 47.5%
• Extra-large investors – inflow ratio: 48.5%

Despite a relatively strong fund-flow score, the block trend is negative, indicating institutional caution or profit-taking. Retail and big-money flows are aligned in a net outflow, reinforcing the bearish momentum.

Key Technical Signals: Bearish Momentum, Oversold Conditions

Technically, Gartner is in a weak position, with zero bullish and two bearish indicators dominating. The technical score is a poor 1.0 (internal diagnostic score), signaling significant caution.

Recent Indicator Activity

• RSI Oversold (score: 1 – internal diagnostic score): Historical average return: -2.65%, win rate: 41.94%.
• WR Oversold (score: 1): Historical average return: -2.1%, win rate: 24.39%.

Over the last 5 days, the stock has repeatedly shown bearish signals, including multiple appearances of:

• Long Upper Shadow
• Inverted Hammer

Trend Insight

The key technical insight is clear: “Technical indicators show that the market is in a weak state, and we need to pay attention to the risk of decline.” With a 2 vs 0 bearish-to-bullish indicator ratio, the momentum is strongly on the bearish side.

Conclusion: Avoid for Now

With bearish technicals, mixed analyst ratings, and negative fund flows, Gartner is not currently a compelling buy. Investors should consider waiting for a clearer reversal signal or monitoring earnings in the near term for any signs of stabilization or catalysts that could reverse the current downtrend.