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Here's Why You Should Retain TransUnion (TRU) Stock for Now
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TransUnion (TRU - Free Report) is currently benefiting from strength in its U.S. Markets and International segments. Favorable macroeconomic conditions, the revival of the company’s growth-oriented portfolio from the pandemic blues, robust sales performance and ongoing innovations are acting as tailwinds for TransUnion.
The company has a long-term (three to five years) expected EPS growth rate of 23%. Its earnings for 2022 and 2023 are expected to improve 15.4% and 16.6%, respectively, year over year.
Factors That Augur Well
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 form the contacts and data that TransUnion already has. This fortifies TRU's ability to sustain its competitive advantage and protect its market share.
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. In order to capitalize on the immense potential growth in this market, TransUnion has leveraged its next-generation technology to strengthen its analytics capabilities and has further expanded its database.
The recent acquisition of Verisk Financial Services is expected to help TransUnion offer enhanced insights and solutions that should help raise financial inclusion, as well as improve fraud prevention and risk management.
Some Risks
TransUnion's current ratio at the end of first-quarter 2022 was 1.79, lower than the current ratio of 1.94 reported at the end of the prior quarter. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
The stock declined 24.2% over the past year compared with a 10.4% fall of the industry it belongs to.
Cross Country Healthcare has an expected earnings growth rate of 54.3% for the current year. It delivered a trailing four-quarter earnings surprise of 29.2%, on average.
CCRN has a long-term earnings growth rate of 6.9%. Shares have soared 9.1% in the past year.
Gartner’s shares have jumped 7.1% in the past year. The company delivered a trailing four-quarter earnings surprise of 24.2%, on average.
The Zacks Consensus Estimate for IT’s earnings in the current year has moved up 12.3% in the past 30 days.
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Here's Why You Should Retain TransUnion (TRU) Stock for Now
TransUnion (TRU - Free Report) is currently benefiting from strength in its U.S. Markets and International segments. Favorable macroeconomic conditions, the revival of the company’s growth-oriented portfolio from the pandemic blues, robust sales performance and ongoing innovations are acting as tailwinds for TransUnion.
The company has a long-term (three to five years) expected EPS growth rate of 23%. Its earnings for 2022 and 2023 are expected to improve 15.4% and 16.6%, respectively, year over year.
Factors That Augur Well
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 form the contacts and data that TransUnion already has. This fortifies TRU's ability to sustain its competitive advantage and protect its market share.
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. In order to capitalize on the immense potential growth in this market, TransUnion has leveraged its next-generation technology to strengthen its analytics capabilities and has further expanded its database.
The recent acquisition of Verisk Financial Services is expected to help TransUnion offer enhanced insights and solutions that should help raise financial inclusion, as well as improve fraud prevention and risk management.
Some Risks
TransUnion's current ratio at the end of first-quarter 2022 was 1.79, lower than the current ratio of 1.94 reported at the end of the prior quarter. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
The stock declined 24.2% over the past year compared with a 10.4% fall of the industry it belongs to.
TransUnion Price
TransUnion price | TransUnion Quote
Zacks Rank and Stocks to Consider
TRU currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader Business Services sector that investors can consider are Cross Country Healthcare (CCRN - Free Report) and Gartner (IT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cross Country Healthcare has an expected earnings growth rate of 54.3% for the current year. It delivered a trailing four-quarter earnings surprise of 29.2%, on average.
CCRN has a long-term earnings growth rate of 6.9%. Shares have soared 9.1% in the past year.
Gartner’s shares have jumped 7.1% in the past year. The company delivered a trailing four-quarter earnings surprise of 24.2%, on average.
The Zacks Consensus Estimate for IT’s earnings in the current year has moved up 12.3% in the past 30 days.