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Here's Why Investors Should Retain Equifax (EFX) Stock Now

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Equifax Inc. (EFX - Free Report) is benefiting from its technology transformation and strong customer base.

EFX’s revenues for 2022 and 2023 are expected to witness 3.7% and 2.6% year-over-year improvements, respectively.

Factors That Augur Well

Equifax’s ongoing cloud data and technology transformation aim to drive innovation and product development, and strengthen customer and partner integration. As part of the shift, EFX is migrating to a public cloud environment involved in virtual private cloud deployment techniques. EFX is focused on streamlining customers’ access to its analytical platforms.

Moreover, EFX concentrates on expanding and strengthening its customer base with efforts to deliver multi-data solutions. For this, the company anticipates expanding differentiated data assets and analytics through organic growth, mergers and acquisitions, and partnerships. Equifax uses proprietary advanced analytical platforms, machine learning, artificial intelligence and advanced visualization tools.

Risk

Equifax's current ratio at the end of the September quarter was pegged at 0.64, lower than 1.53 reported at the end of the prior-year quarter. A decreasing current ratio is not desirable, as it highlights a company’s difficulty in fulfilling its short-term debt obligations.

Zacks Rank and Stocks to Consider

Equifax currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and CRA International, Inc. (CRAI - Free Report) .

Booz Allen presently carries a Zacks Rank #2 (Buy). BAH has a long-term earnings growth expectation of 8.9%.

Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.

CRA International carries a Zacks Rank of 2 at present. CRAI has a long-term earnings growth expectation of 14.3%.

CRA International delivered a trailing four-quarter earnings surprise of 25.7%, on average.


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