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Reasons to Retain Equifax (EFX) Stock in Your Portfolio

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·3 min read
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Equifax Inc. EFX remains focused on the expansion of its customer base through cloud data and technology transformation.

The company has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.

Equifax has an expected long-term (three to five years) earnings per share growth rate of 15.1%. The company’s 2022 and 2023 earnings are expected to improve 14.4% and 16.6%, respectively, year over year.

Equifax has had an impressive run on the bourses over the past year. The stock has gained 29.9% against 29.5% decline of the industry it belongs to.

Equifax, Inc. Price

Equifax, Inc. Price
Equifax, Inc. Price

Equifax, Inc. price | Equifax, Inc. Quote

Factors That Auger Well

The company’s ongoing cloud data and technology transformation is aimed at driving innovation and product development, strengthening customer and partner integration. As part of the transformation, Equifax is migrating to a public cloud environment that engages virtual private cloud deployment techniques. The company remains focused on streamlining customers’ access to its analytical platforms.

Equifax remains focused on expanding and strengthening its customer base with efforts on delivering multi-data solutions by expanding differentiated data assets and analytics through organic growth, mergers and acquisitions, and partnerships. The company uses proprietary advanced analytical platforms, machine learning, artificial intelligence and advanced visualization tools.

The recent acquisition of Efficient Hire, which is now part of Equifax’s Workforce Solutions business unit, expands the company's portfolio of employer- and HR-focused solutions, boosting its ability to help clients manage their hiring and employment needs.

Some Risks

Equifax ’s has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of fourth-quarter 2021 was $224.7 million compared with the long-term debt level of $4.5 billion. Further, the cash level can't meet the short-term debt of $824.8 million.

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 FactSet Research Systems Inc. FDS and Cross Country Healthcare, Inc. CCRN.

Cross Country Healthcare has an expected long-term earnings per share (three to five years) growth rate of 6.6%. CCRN has a trailing four-quarter earnings surprise of 41.5%, on average.

Cross Country Healthcare’s shares have surged 76% in the past year. CCRN sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FactSet has an expected earnings growth rate of around 15.1% for the current year. FDS has a trailing four-quarter earnings surprise of 6.1%, on average.

FactSet shares have surged 36.9% in the past year. FDS has a long-term earnings growth of 10%. FDS carries a Zacks Rank #2 (Buy).

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Equifax, Inc. (EFX) : Free Stock Analysis Report

FactSet Research Systems Inc. (FDS) : Free Stock Analysis Report

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

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