The Most Important Metric for Globant Investors to Follow in 2021

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IT consulting specialist Globant (NYSE: GLOB) was an obvious beneficiary of the digital workplace trend in 2020, as major clients tapped the company to help navigate an extremely difficult year altered by the pandemic. The company’s shares rose 105% last year as it posted vigorous year-over-year top-line expansion of 22% and an operating margin of nearly 10% in the first three reported quarters of 2020.

Globant now trades at 11 times forward-one-year sales, pushing its stock into slightly pricey territory compared to its publicly traded IT consulting peers, which generally tend to trade at price-to-sales ratios of between two and 10. In 2021, I’m focused on Globant’s professional headcount as a primary indicator that it can continue to justify its premium. 

Image source: Getty Images.

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