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Here's Why Investors Should Hold on to Verisk (VRSK) Stock

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·2 min read
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Verisk Analytics, Inc.’s VRSK shares have had a decent run on the bourses over the past year, gaining 10.1% against 8.9% growth of the industry it belongs to.

The company has an expected long-term earnings per share (three to five years) growth rate of 10.2%. Its earnings are expected to increase 2.4% in 2021 and 15.3% in 2022, year over year.

Verisk Analytics, Inc. Price and Consensus

Verisk Analytics, Inc. Price and Consensus
Verisk Analytics, Inc. Price and Consensus

Verisk Analytics, Inc. price-consensus-chart | Verisk Analytics, Inc. Quote

Factors That Auger Well

Verisk has a robust growth strategy that focuses on organic growth, product development and acquisitions.

Using advanced technologies to collect and analyze data, Verisk draws on unique data assets and deep-domain expertise to provide predictive analytics and decision support solutions that are integrated into customer workflows. The company’s specialized and in-depth knowledge in markets such as energy, insurance, financial services and risk management adds value to its analytics. A steady stream of first-to-market innovations and the ability to deeply integrate into customer workflows allows the company to strengthen its client base over time.

Verisk has been consistently acquiring and investing in companies globally to expand data and analytics capabilities across industries. The recently announced acquisition of assets and capabilities of 4C Solutions will help the company expand into the group life insurance market. The 2020 acquisition of Franco Signor should help Verisk strengthen its foothold in the Medicare space.

Some Risks

Verisk’s cash and cash equivalent balance of $276 million at the end of second-quarter 2021 was well below the long-term debt level of $2.7 billion, underscoring that the company does not have enough cash to meet this debt burden. The cash level cannot even meet the short-term debt of $403 million.

Zacks Rank and Stocks to Consider

Verisk currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are ManpowerGroup MAN, Cross Country Healthcare CCRN and Genpact Limited G, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Cross Country Healthcare and Genpact is pegged at 24.2%, 9.9% and 14.7%, respectively.


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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report

Genpact Limited (G) : Free Stock Analysis Report

Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report

Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report

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