Should You Invest in S&P Global?

PHOTO CREDIT: S&P Global

OVERVIEW

S&P Global Incorporation is a company based in the United States. The company operates the Standard and Poor 500 Index and the Dow Jones Industrial Average on the New York Stock Exchange. The company offers a wide range of products and services, ranging from indexing to data and financial analytics, to its customers around the world. The company was founded in 1960.

Why You Should?

1. S&P Global will report even better financial numbers when this pandemic is over. This is because customers and companies around the world will have more money in order to go public and purchase more analytical services. This will further benefit the company’s sales and will also benefit investors in the company.
2. S&P Global offers an extremely wide range of products and services to its customers. The company does everything from listing a company on its index to various ratings and data analytics services. This offers the company many revenue streams and will help the company go through a time of lower demand for one of its services as it has many others which it can rely on. This will also benefit investors in the company.
3. S&P Global continues to invest money so that it can be well-positioned for the future of the finance industry. This will also help the company separate itself from the competition and will drive its sales in the future. This will also benefit investors in the company.
4. The company has reported rising revenues and profits over the past couple of financial years due to the reasons mentioned above. This has benefited the company to invest more money into its service offerings and will also help the company in the future. This has also benefited investors in the company. In the financial year of 2019, the company reported revenues of around 6.7 billion and profits of around 2.12 billion. Both of these metrics are higher than what the company reported in the financial year of 2018 when they had revenues of around 6.26 billion and profits of around 1.96 billion.

PHOTO CREDIT: Yahoo Finance

Why You Should Not?

1. S&P Global still faces tough competition from companies like Nasdaq who offer companies another way to go public. These companies also offer similar services and offerings to companies and customers around the world. This might hurt the company in the future and might also hurt investors in the company.

MY OPINION

I think that S&P Global is a good long-term investment due to its position as a good reopening play, a wide range of revenue streams in its portfolio, it’s good investments for the future of finance, and rising revenues and profits. However, tough competition might hurt some of the company’s sales in the future.