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Reasons to Retain TransUnion (TRU) in Your Portfolio Now

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TransUnion (TRU - Free Report) is currently benefiting from product initiatives, acquisitions and increasing liquidity.

TRU has an expected long-term (three to five years) EPS growth rate of 14.6%. The company’s earnings for 2024 and 2025 are anticipated to grow 14.2% and 17.2% year over year, respectively. Revenues are expected to increase 6.5% in 2024 and 7.9% in 2025.

Strong Liquidity, Product Initiatives and Acquisitions Bode Well

TRU has recorded better-than-expected earnings and revenue performance in three of the past four quarters, driven by strength in the company’s Financial Services and Emerging verticals that come under the U.S. Markets segment.

International segment revenues are also in good shape, boosted by increased volumes resulting from improving economic conditions in all regions and new product initiatives. U.S. Markets and International revenues increased 7% and 16% year over year, respectively, in the first quarter of 2024.

TransUnion Revenue (TTM)

TransUnion Revenue (TTM)

TransUnion revenue-ttm | TransUnion Quote

The 2022 acquisition of Verisk Financial Services has enabled the company to offer enhanced insights and solutions that help raise financial inclusion, as well as improve fraud prevention and risk management. The 2021 acquisition of Neustar has positioned TRU to utilize Neustar’s technology to standardize and streamline product delivery platforms, aiming to create a unified global platform for the fulfillment of product lines.

TransUnion's current ratio (a measure of liquidity) at the end of the first quarter of 2024 was 1.65, higher than the preceding quarter's 1.47 and the year-ago quarter’s 1.57. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.

A Risk

TransUnion caters to a highly competitive market. Its competitors widely vary according to its business segment, geographical market and industry vertical that its solutions address. The high degree of competition restricts its pricing power and can be a strain on the bottom line.

Zacks Rank and Stocks to Consider

TransUnion currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton (BAH - Free Report) and SPX Technologies, Inc. (SPXC - Free Report) .

Booz Allen Hamilton has a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BAH has a long-term earnings growth expectation of 14%. It delivered a trailing four-quarter earnings surprise of 12.5%, on average.

SPX Technologies, Inc. currently flaunts a Zacks Rank of 1. It has a long-term earnings growth expectation of 18%. SPXC delivered a trailing four-quarter earnings surprise of 13.9%, on average.


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Booz Allen Hamilton Holding Corporation (BAH) - free report >>

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