5 Best Quality Stocks to Buy Now

4. S&P Global Inc. (NYSE:SPGI)

Number of Hedge Fund Holders: 90

S&P Global Inc. (NYSE:SPGI) is a New York-based credit rating agency that is known for publishing research and analysis on bonds, commodities, and stocks.

On November 7, Simon Clinch at Atlantic Equities upgraded S&P Global Inc. (NYSE:SPGI) stock from a Neutral to an Overweight rating. The analyst also increased the target price from $356 to $386 after the company reported strong Q3 2022 results. Clinch pinpointed the improved valuation of the diversified and high-quality business. Furthermore, the aggressive capital return program and self-help opportunities warranted an upgrade for S&P Global Inc. (NYSE:SPGI) stock. Clinch concluded that the stock looks attractive on a risk-adjusted basis compared to its competitors and provides a potential upside opportunity of over 11.1% from the closing price as of November 30. S&P Global Inc. (NYSE:SPGI) is in the final phase of the multiyear restructuring plan that will unlock value for investors.

Baron Funds has a long-term bullish outlook on S&P Global Inc. (NYSE:SPGI) as one of the best quality stocks. Here’s what the firm said about the company:

“Shares of rating agency and data provider S&P Global Inc. (NYSE:SPGI) fell 9% during the third quarter due to continued weak debt issuance activity and headwinds to the Indices business from equity market declines. Credit markets were exceptionally soft during the quarter with non-financial corporate bond issuance down 36% for investment grade and down 84% for high yield, reflecting greater investor risk aversion, rising interest rates, and a drop-off in M&A activity. We believe this ratings weakness is temporary and diversification benefits from the acquisition of IHS Markit should support earnings growth next year. Over the long term, the company should continue benefiting from the secular trends of increasing bond issuance, growth in passive investing, and demand for data and analytics, while enjoying meaningful and durable competitive advantages that, in our view, are only strengthening following the merger with IHS Markit.”