Stock Analysis | Gartner Outlook - Technical Weakness and Mixed Analyst Signals

Market Snapshot

Takeaway: Gartner (IT.N) is showing technical weakness with a low internal diagnostic score of 2.95, suggesting investors should avoid entry while analysts remain divided on its outlook.

News Highlights

Recent news headlines have been largely unrelated to Gartner directly, but several industry and economic developments may influence its sector. Here are a few key highlights:

• May 29, 2025 - Changes to U.S. COVID-19 Vaccine Policy: The Department of Health and Human Services has made significant updates to vaccine approvals, potentially affecting healthcare IT providers like Gartner in the long term.
• May 30, 2025 - Outpace SEO Launches Home Services SEO: A surge in home services digital demand may indirectly benefit Gartner through increased IT infrastructure needs in the sector.
• May 31, 2025 - Wells Fargo Acquires Comcast Shares: Institutional buying in the telecom sector may indicate broader confidence in tech services, though it remains to be seen if this optimism extends to IT services firms like Gartner.

Analyst Views & Fundamentals

The analyst landscape for Gartner is mixed. The simple average rating score is 3.12, while the performance-weighted rating stands at 2.72, suggesting analysts with better historical performance tend to be more cautious.

Rating consistency is low, with a spread of ratings including "Strong Buy," "Buy," "Neutral," and "Sell" over the past 20 days. This divergence highlights uncertainty among experts.

On the fundamental side, Gartner has an internal diagnostic score of 4.27, indicating moderate strength. Here are key fundamental values:

• Net cash flow from operating activities per share (YoY growth rate): 25.87% (score: 2)
• PCF: 87.06 (score: 0)
• Equity multiplier: 5.43 (score: 2)
• Operating cycle: 82.70 (score: 0)
• Days sales outstanding: 82.70 (score: 3)
• Income tax / Total profit: 22.76% (score: 2)
• Long-term debt to working capital ratio: 8.42% (score: 2)
• Interest coverage ratio (EBIT / Interest expense): 24.19% (score: 1)
• Cash-MV: -0.46 (score: 2)
• Net profit / Total profit: 77.24% (score: 0)

Despite moderate cash flow growth, weaknesses in liquidity and leverage metrics are pulling the fundamental score down.

Money-Flow Trends

Big money is currently flowing out of Gartner with a negative overall trend in fund flows. Here's a breakdown of inflow ratios across investor types:

• Extra-large investors: 45.63% inflow ratio (negative trend)
• Large investors: 46.73% inflow ratio (negative trend)
• Medium investors: 49.02% inflow ratio (negative trend)
• Small investors: 49.34% inflow ratio (negative trend)

The fund flow score of 7.6 (internal diagnostic score, good) suggests that while outflows are widespread, the negative trend isn’t extreme. This might reflect caution more than panic.

Key Technical Signals

Gartner's technical profile is weak, with 0 bullish indicators and 4 bearish indicators in a 5-indicator analysis over the last 5 days. The technical score is 2.95, and the model strongly advises to avoid the stock.

Internal Diagnostic Scores of Key Indicators

• WR Oversold: 1.00 - Strong bearish signal suggesting overselling.
• Bearish Engulfing: 1.00 - A candlestick pattern indicating bearish momentum.
• MACD Golden Cross: 2.74 - A neutral-to-bullish pattern, but weak in context.
• Marubozu White: 3.94 - Suggests rising momentum, but too late to reverse the trend.
• WR Overbought: 6.09 - A neutral-to-bullish signal, though less impactful.

Recent Chart Patterns

• August 15, 2025: WR Oversold and Bearish Engulfing confirmed a bearish reversal.
• August 20, 2025: WR Overbought and MACD Golden Cross attempted a rebound, but failed to gain traction.
• August 26, 2025: Marubozu White formed, indicating a continued sell-off without a recovery.

Key insight: The technical signals are overwhelmingly bearish, with no reversal signs in sight. Momentum is clearly on the downside.

Conclusion

With a weak technical profile and mixed analyst signals, Gartner remains a risky bet. The fundamental score of 4.27 is modest, while the fund flow and technical indicators all point to caution. Investors are advised to consider waiting for a clearer trend reversal or wait for a catalyst—such as Q3 earnings or industry macro news—that could shift the balance.