S&P Global Stock Outperforms as Mid-Teens EPS Growth Thesis Gains Traction

S&P Global Inc. shares outperformed competitors on a strong trading day September 3, drawing renewed investor attention to an analyst thesis that the company could deliver mid-teens earnings per share growth from what is characterized as a cheaper valuation relative to its historical range.

On the ratings side, S&P Global Ratings issued a warning about risks stemming from China's generous domestic credit ratings, flagging concerns that inflated assessments in the Chinese market could obscure underlying credit quality and create broader financial stability risks.

Separately, S&P Global cut its outlook on Dick's Sporting Goods, citing headwinds tied to Foot Locker's difficulties as a read-through for the broader sporting goods retail sector.

The day also brought a wave of S&P Global PMI releases for August. In the United States, the services PMI came in at 56.5, beating the 56.8 prior reading and the 56.8 estimate, while the composite PMI held steady at 56.0, matching both the prior month and nearly meeting the 56.1 consensus. In Europe, Germany surprised to the upside with its services PMI rising to 49.7 against a 48.5 estimate, lifting its composite to 51.8, while France's services PMI disappointed at 48.0 versus a 48.4 estimate. Italy and Spain remained solidly expansionary. Russia's services PMI jumped to 51.3 from 49.0 the prior month, moving back into expansion territory. The UAE composite surged to 55.3 from 52.7, and Saudi Arabia's composite edged up to 53.8 from 53.1. India's final August services PMI came in at 54.1, slightly below the 54.5 flash reading.