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TransUnion TRU performed well in the past year and has the potential to sustain the momentum. If you haven’t taken advantage of its 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.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 38% in the past year compared with a 22.4% rise of the industry it belongs to.
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Solid Rank: TransUnion currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: For 2021, 10 estimates moved north in the past 60 days versus no southward revision. This reflects on analysts’ confidence in the company. The Zacks Consensus Estimate for 2021 earnings has moved up 3.1% in the past 60 days.
Positive Earnings Surprise History: TransUnion has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 6.5%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for 2021 earnings is pegged at $3.69, which reflects year-over-year growth of 23%. Moreover, earnings are anticipated to register 11% growth in 2022. The company’s long-term expected earnings per share (EPS) growth rate is at pegged at 22%.
Driving Factors: As emerging market economies continue to develop and mature, TransUnion is well-positioned to gain from the associated favorable socio-economic trends. A rise in the risk of identity theft due to data breaches along with high consumer awareness about the importance and usage of their credit information is propelling the demand for TransUnion’s consumer solutions.
TransUnion has an attractive business model with highly recurring and diversified revenue streams, significant operating leverage, low capital requirements as well as stable cash flows. The inherent nature and significance of its solutions in customers’ decision-making endow it with high customer retention and revenue visibility.
Other Stocks to Consider
Investors interested in the broader Business Services sector can also consider stocks like ManpowerGroup Inc. MAN, Equifax EFX and Genpact Limited G. Equifax and Genpact carry a Zacks Rank #2 (Buy), while ManpowerGroup sports a Zacks #1 Rank.
The long-term expected EPS (three to five years) growth rate for ManpowerGroup, Equifax and Genpact is pegged at 24.2%, 15.2% and 14.7%, respectively.
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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
Genpact Limited (G) : Free Stock Analysis Report
TransUnion (TRU) : Free Stock Analysis Report
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Zacks Investment Research