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CoreLogic (CLGX) Touches 52-Week High: What's Driving It?

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Shares of CoreLogic, Inc. scaled a 52-week high of $81.35 in the trading session on Feb 2, before closing a tad lower at $80.06.

The company’s shares have charted a solid trajectory in recent times, appreciating 68.4% over the past year, much ahead of 15.3% growth of the industry it belongs to.

 

Notably, CoreLogic has witnessed a 17% rise in share price since it posted third-quarter 2020 results.

Let’s find out what’s supporting the uptick.

Consecutive Earnings & Revenue Beat

CoreLogic came up with better-than-expected earnings and revenue performance in five of the last six quarters. The top line benefited from strength in the company’s core mortgage and insurance, and spatial solutions. The bottom line was aided by revenue growth, operating leverage, better business mix and cost-efficiency programs.

Raised 2021 Guidance

CoreLogic has raised guidance for 2021. It is optimistic about its annual results on the back of organic revenue growth, operational efficacy and market volumes. CoreLogic expects revenues of $1.64-$1.675 billion compared with the prior guidance of $1.585-$1.630 billion.  Adjusted earnings per share are anticipated in the range of $4.40-$4.65 compared with the prior guidance of $4.00-$4.20. Adjusted EBITDA is now anticipated between $575 million and $600 million, compared with the prior guidance of $625-$650 million.

Contributions From Acquisitions

Acquisitions over time 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.

Zacks Rank and Stocks to Consider

CoreLogic currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Business Services sector are ManpowerGroup (MAN - Free Report) , Aptiv (APTV - Free Report) and NV5 Global (NVEE - Free Report) , each carrying a Zacks Rank #2. 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 ManpowerGroup, Aptiv and NV5 Global is 3.5%, 10.9% and 16.8%, respectively

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