Shares of the IT research company Gartner (IT +6.77%) were on the rise today, as investor optimism in the tech stock continued to gain momentum.
Gartner's shares rose by as much as 6% today and were up by 5.8% as of 11:41 a.m.
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An undervalued tech stock?
Gartner's stock has tumbled 53% over the past 12 months, as investors have grown concerned that the company's technology research and insights will be displaced by artificial intelligence.
But the steep decline has some investors wondering whether Gartner is undervalued. The company beat Wall Street's consensus earnings estimate of $2.99 per share in the first quarter, instead reporting adjusted earnings of $3.32 per share.
The company will release its second-quarter results next week, on Aug. 4, and investors may be hoping for another earnings beat -- and snatching up shares in anticipation.
NYSE: IT
Key Data Points
Wait and see
While it's understandable that some investors want to buy up Gartner stock while it looks like a sale, I'd still wait a few more quarters to see how the company is countering potential AI disruption.
Investors will get a clearer view of how the company is doing when its second-quarter results drop next week. It's worth waiting a little longer for a clearer perspective, especially if you're on the fence about buying Gartner right now.
