TransUnion (TRU - Free Report) is currently benefiting from strong sales performance and ongoing innovations.
The company’s revenues for 2022 and 2023 are expected to improve 19.7% and 3.5%, respectively, year over year. Earnings are expected to increase 6.7% and 3% year over year, respectively, in 2022 and 2023. TRU has a long-term earnings growth expectation of 30.8%.
Factors That Bode Well
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. To capitalize on the immense growth potential in this market, TransUnion has leveraged its next-generation technology to strengthen its analytics capabilities and further expanded its database.
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 acquire the contacts and data TransUnion already has. This fortifies TRU's ability to sustain its competitive advantage and protect its market share.
The company has made significant investments to modernize its infrastructure and facilitate the seamless transition to the latest Big Data and analytics technologies. These enable it to expand its business and improve its cost structure.
Some Risks
TransUnion's current ratio (a measure of liquidity) at the end of the third quarter of 2022 was 1.73, lower than the current ratio of 2.13 reported at the end of the prior quarter. A decline in the current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
TRU currently carries a Zacks Rank #3 (Hold).
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 carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
TransUnion (TRU - Free Report) is currently benefiting from strong sales performance and ongoing innovations.
The company’s revenues for 2022 and 2023 are expected to improve 19.7% and 3.5%, respectively, year over year. Earnings are expected to increase 6.7% and 3% year over year, respectively, in 2022 and 2023. TRU has a long-term earnings growth expectation of 30.8%.
Factors That Bode Well
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. To capitalize on the immense growth potential in this market, TransUnion has leveraged its next-generation technology to strengthen its analytics capabilities and further expanded its database.
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 acquire the contacts and data TransUnion already has. This fortifies TRU's ability to sustain its competitive advantage and protect its market share.
The company has made significant investments to modernize its infrastructure and facilitate the seamless transition to the latest Big Data and analytics technologies. These enable it to expand its business and improve its cost structure.
Some Risks
TransUnion's current ratio (a measure of liquidity) at the end of the third quarter of 2022 was 1.73, lower than the current ratio of 2.13 reported at the end of the prior quarter. A decline in the current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
TRU currently carries a Zacks Rank #3 (Hold).
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 carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Get the latest research report on CRAI - FREE
Get the latest research report on BAH - FREE
Get the latest research report on TRU - FREE