Why You Should Hold CoreLogic (CLGX) Stock in Your Portfolio
CoreLogic, Inc. CLGX has an impressive Growth Score of A. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of its growth.
The company has expected long-term earnings per share (three to five years) growth rate of 12%. Further, earnings are anticipated to register 31.1% growth in 2020 and 1.9% in 2021.
Shares of CoreLogic have surged 93.6% in the past year compared with the industry’s 20.8% rally.
Driving Factors
CoreLogic is working on strategic initiatives aimed at long-term growth. It is investing in products and solutions, operational capabilities, technology platforms and infrastructure to build strong strategic client partnerships.
Acquisitions overtime have helped CoreLogic increase its market share in mortgage, real estate, insurance, capital markets, public sector and rental property markets. CoreLogic’s January 2020 acquisition of Location, Inc. will likely enhance the company’s offering for property and casualty insurance by expanding capabilities in predictive, location-based analytics. In 2019, CoreLogic acquired National Tax Search to expand commercial tax capabilities for its customers.
Some Risks
CoreLogic's total debt to total capital ratio of 0.58 was higher than the industry’s 0.35 at the end of third-quarter 2020. A high debt to capitalization ratio indicates higher risk of insolvency in challenging times.
Further, the company’s cash and cash equivalent of $302 million at the end of the quarter was well below the long-term debt level of $1.55 billion, underscoring that the company doesn’t have enough cash to meet this debt burden. However, the cash level can meet the short-term debt of $21 million.
Zacks Rank and Stocks to Consider
CoreLogic currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader Zacks Business Services sector are ManpowerGroup Inc. MAN , Gartner, Inc. IT and Insperity, Inc. NSP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Long-term earnings (three to five years) growth rate for ManpowerGroup, Gartner and Insperity is estimated at 1.5%, 13.5% and 15%, respectively.
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