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Verisk (VRSK) Stock Rallies 30.5% Year to Date: Here's Why

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Verisk Analytics, Inc.’s VRSK shares have gained 30.5% of value in the year-to-date period compared with the industry’s 2% increase.

Reasons for Surge

Verisk continues to witness higher organic revenue growth on increase in new customers for existing solutions, cross-sale of its existing solutions to customers at present, and also the sale of new solutions. In the third quarter of 2020, revenues of $702.7 million beat the consensus estimate by 1.5% and increased 7.6% year over year on a reported basis and 3.6% on an organic constant-currency basis.

Acquisitions have been one of the key growth catalysts for Verisk. The company is continuously acquiring and making investments to expand its data and analytics capabilities across industries. The recent acquisition of Franco Signor strengthened the company’s foothold in the Medicare space.

Favorable Estimate Revisions & Positive Surprise

The Zacks Consensus Estimate for current-quarter earnings increased 4% to $1.31 per share in the past 60 days.

Moreover, Verisk has a trailing four-quarter earnings surprise of 5.5%, on average.

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 Gartner, Inc. IT, Automatic Data Processing ADP and Insperity NSP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected earnings per share (three to five years) growth rate for Gartner, Automatic Data Processing and Insperity is 13.5%, 12% and 15%, respectively.

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Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
Insperity, Inc. (NSP) : Free Stock Analysis Report
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
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