Reasons to Hold Equifax (EFX) Stock in Your Portfolio Now
Equifax Inc. EFX is benefiting from its technology transformation and strong customer base.
EFX’s revenues for 2023 and 2024 are expected to witness 4.1% and 9.9% year-over-year improvements, respectively.
Factors That Augur Well
Equifax’s ongoing cloud data and technology transformation aim to drive innovation and product development, and strengthen customer and partner integration. As part of the shift, EFX is migrating to a public cloud environment involved in virtual private cloud deployment techniques. EFX is focused on streamlining customers’ access to its analytical platforms.
Moreover, EFX concentrates on expanding and strengthening its customer base, with efforts to deliver multi-data solutions. For this, the company anticipates expanding differentiated data assets and analytics through organic growth, mergers and acquisitions, and partnerships. Equifax uses proprietary advanced analytical platforms, machine learning, artificial intelligence and advanced visualization tools.
A Key Risk
The cyber attack at Equifax, under which criminals stole highly sensitive personal data of approximately 143 million of its consumers, heavily tarnished its brand image, reputation and credibility. We believe that the incident will certainly have an adverse impact on the company’s financial performance in near term.
Zacks Rank and Stocks to Consider
Equifax currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. CAR and ICF International, Inc. ICFI.
Avis Budget currently carries a Zacks Rank #2 (Buy). CAR has a VGM score of A. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
CAR delivered a trailing four-quarter earnings surprise of 78%, on average.
ICF International carries a Zacks Rank #2 at present. ICFI’s 2023 revenues and earnings are expected to gain 10.4% and 3.6% year over year, respectively.
ICF International delivered a trailing four-quarter earnings surprise of 9.2%, on average.
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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
ICF International, Inc. (ICFI) : Free Stock Analysis Report
