A wise investment decision involves buying well-performing stocks at the right time while selling those that are at risk. A rise in share price and strong fundamentals signal a stock’s bullish run.
TransUnion TRU, a business-information services company, performed extremely well year to date and has the potential to carry the momentum forward. Therefore, if you have not taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
Share Price Performance: A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourse year to date. TransUnion has rallied 49.8% compared with the industry’s 42.3% growth.
Solid Rank & VGM Score: TransUnion has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities for investors. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Nine estimates for the current year moved north over the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2019 climbed 2.6%.
Positive Earnings Surprise History: TransUnion has an impressive earnings surprise history. The company outpaced the consensus mark in each of the trailing four quarters, delivering an average beat of 4.9%.
Solid Prospects: The Zacks Consensus Estimate for 2019 earnings is pegged at $2.77, indicating year-over-year growth of 10.8%. Moreover, earnings are expected to register 13% growth in 2020. The stock has a long-term expected earnings growth rate of 14.2%.
Growth Factors: TransUnion’s addressable market includes the Big Data and analytics market, which is expanding at a rapid pace. Numerous underlying trends such as creation of massive amounts of data, advances in technology and analytics that allow data to be processed more swiftly and efficiently, result in increased demand for these business insights across industries and geographies.
TransUnion Revenue (TTM)
TransUnion revenue-ttm | TransUnion Quote
Research firm, IDC, projects that worldwide revenues for big data and business analytics (BDA) solutions will witness a five-year compounded annual growth rate (CAGR) of 13.2% to reach $274.3 billion in 2022. In order to capitalize on the immense potential growth in this market, TransUnion has leveraged its next-generation technology to strengthen its analytics capabilities and further expand its database.
Key acquisitions like Drivers History, TLO, eScan, Callcredit, and iovation, added new data and capabilities, extended the company’s geographic foothold and accelerated its organic growth.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are Global Payments GPN, Mastercard MA and Cardtronics CATM. While Global Payments and Cardtronics sport a Zacks Rank #1, Mastercard carries a Zacks Rank #2.
Long-term expected EPS (three to five years) growth rate for Global Payments, Mastercard and Cardtronics is 17%, 16% and 4%, respectively.
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Cardtronics PLC (CATM) : Free Stock Analysis Report
TransUnion (TRU) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
Global Payments Inc. (GPN) : Free Stock Analysis Report
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