Reasons to Retain TransUnion (TRU) Stock in Your Portfolio
TransUnion.TRU shares have gained 9.3% over the past three months, outperforming the 7.4% rise of the industry it belongs to.
The company is currently benefiting from strong sales performance and ongoing innovations.The company’s revenues for 2023 and 2024 are expected to improve 4.3% and 8.4%, respectively, year over year.
TransUnion Price
Tailwinds
TransUnion’s addressable market includes the burgeoning Big Data and analytics market, which is expanding at a rapidly accelerating pace as companies understand the advantages of building an analytical enterprise where decisions are derived from data and insights. To capitalize on the immense growth potential in this market, TransUnion has leveraged its next-generation technology to strengthen its analytics capabilities and further expand its database.
TransUnion’s gigantic treasure trove of data is its most distinguishing asset and also perhaps the biggest barrier to entry for competitors. Acquiring or building such data involves huge costs, making it extremely difficult for a new company to acquire the contacts and data TransUnion already has. This fortifies TRU's ability to sustain its competitive advantage and protect its market share.
The company has made significant investments to modernize its infrastructure and facilitate the seamless transition to the latest Big Data and analytics technologies. These enable it to expand its business and improve its cost structure.
A Risk
TransUnion's current ratio (a measure of liquidity) at the end of the second quarter of 2023 was 1.51, lower than the previous quarter’s 1.57 and the prior-year quarter’s 1.63. A decline in the current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
TRU currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Business Services sector can consider stocks like Verisk Analytics VRSK and ICF International ICFI.
Verisk currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The company has a trailing four-quarter earnings surprise of 9.9% on average. VRSK shares have gained 4% in the past three months.
ICF International carries a Zacks Rank #2 and has a VGM Score of A. The company has a trailing four-quarter earnings surprise of 7% on average. ICFI shares have gained 9.5% in the past three months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ICF International, Inc. (ICFI) : Free Stock Analysis Report
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
TransUnion (TRU) : Free Stock Analysis Report
