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3 Stocks to Consider From the Booming Business Information Industry
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Artificial intelligence, proprietary data and deeper workflow integration are reshaping the Zacks Business - Information Services industry. Combining AI with specialized datasets enables providers to deliver faster insights, automate processes and improve financial research, insurance analytics, credit assessment and fraud detection. FactSet (FDS - Free Report) , Verisk (VRSK - Free Report) and TransUnion (TRU - Free Report) are well positioned, although intensifying competition may pressure pricing and require clear differentiation.
Cloud-based subscription platforms also support recurring revenues, strong retention and cross-selling opportunities. By embedding analytics and productivity tools into customers’ daily operations, providers can strengthen relationships and improve revenue visibility. FactSet’s annual subscription value rose 6.7% year over year in the second quarter of fiscal 2026, while annual retention exceeded 95%. Still, clients increasingly demand measurable returns on spending.
Rising digital transactions, regulatory complexity and sophisticated fraud are boosting demand for identity, underwriting, compliance and risk solutions. Yet handling sensitive data creates cybersecurity, privacy, litigation and reputational risks.
Macroeconomic conditions remain an important variable. FactSet depends partly on financial-market spending, Verisk on insurance and catastrophe activity, and TransUnion on lending and consumer-credit volumes. Diversified, mission-critical offerings provide resilience, but prolonged weakness in capital markets, lending or customer budgets could delay purchases, intensify cost scrutiny and produce uneven growth across the industry over time.
About the Industry
The Business Information Services industry encompasses financial data, market intelligence, credit reporting, identity verification, risk assessment, insurance analytics and workflow solutions. Its participants range from financial-data platforms such as FactSet to specialized insurance-data providers like Verisk and consumer credit and identity-information companies such as TransUnion. Industry growth is increasingly driven by demand for proprietary datasets, real-time analytics, cloud-based platforms and integrated decision-support tools. Artificial intelligence is accelerating this transition by improving data processing, forecasting, fraud detection, underwriting and workflow automation, while strengthening the value of accurate and trusted information. However, rapidly evolving technology also creates competitive, pricing and investment pressures.
What's Shaping the Future of the Industry?
AI and Proprietary Data Are Reshaping Information Services: Artificial intelligence is transforming financial research, insurance analytics, credit assessment, fraud detection and decision-making. The combination of AI with proprietary, domain-specific data allows business information providers to deliver faster insights, automate workflows and develop more accurate analytical models.
This creates opportunities for FactSet, Verisk and TransUnion, which own specialized datasets across financial markets, insurance and consumer credit. However, rapidly evolving AI tools may increase competition and pricing pressure, requiring these companies to demonstrate superior accuracy, reliability and workflow value.
Subscription Platforms and Workflow Integration Support Growth:The industry continues shifting toward cloud-based subscription platforms embedded within customers’ daily workflows. These offerings improve revenue visibility, strengthen retention and create opportunities to cross-sell data, analytics and productivity solutions. FactSet’s annual subscription value increased 6.7% year over year in the second quarter of fiscal 2026, while annual ASV retention exceeded 95%.
This trend benefits FactSet and Verisk, whose platforms support essential investment and insurance decisions. TransUnion is similarly integrating credit, identity and fraud solutions into customer processes. However, customers’ focus on utilization and returns increases pressure on providers to demonstrate measurable value.
Fraud and Risk Complexity Are Increasing Demand:The expansion of digital transactions, evolving regulations and increasingly sophisticated fraud is driving demand for identity verification, credit assessment, underwriting, compliance and risk analytics. AI is improving detection capabilities, but it is also enabling criminals to conduct more targeted and scalable attacks.
This benefits TransUnion and Verisk, whose solutions help customers evaluate consumer, insurance and digital risks. TransUnion reported that one in six U.S. consumers lost money to digital fraud during the period covered by its first-half 2026 study. However, handling sensitive information also exposes providers to cybersecurity, privacy, litigation and reputational risks.
Macroeconomic Conditions Can Produce Uneven Demand: Although recurring revenues provide stability, industry demand remains sensitive to interest rates, investment activity, hiring, lending, insurance claims and consumer credit conditions. Strong capital-market activity supports demand for financial data, while expanding lending and digital commerce can increase the need for credit and fraud solutions.
This affects FactSet, Verisk and TransUnion differently. FactSet is exposed to financial-market spending, Verisk to insurance activity and catastrophe trends, and TransUnion to lending and consumer-credit volumes. Their diversified offerings and mission-critical products provide resilience, but prolonged economic weakness could delay purchases and increase customer cost pressure.
Zacks Industry Rank Indicates Encouraging Near-Term Prospects
The Business – Information Services industry is housed within the broader Zacks Business Services sector. It carries a Zacks Industry Rank of #80, placing it in the top 32% of 247 Zacks industries.
The group’s Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates underperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and current valuation.
Industry's Price Performance
Over the past year, the Zacks Business – Information Services industry has outperformed the Zacks Business Services sector but underperformed the S&P 500 Composite.
The industry has declined 13% compared with the S&P 500 Composite’s rally of 15.2% and the broader sector’s decline of 21.3% in the same time frame.
One-Year Price Performance
Industry's Price Performance
Based on the forward 12-month price-to-earnings (P/E), which is commonly used for valuing business information services stocks, the industry is currently trading at 17.67X compared with the S&P 500’s 19.76X and the sector’s 17.15X.
Over the past five years, the industry has traded at a high of 32.54X and a low of 17.1X, with a median of 25.87X.
Price to Forward 12 Months P/E Ratio
3 Business Information Service Stocks in Focus
We are presenting three stocks that are well-positioned to grow in the near term.
FactSet: The company has spent more than four decades delivering comprehensive data, advanced analytics, and flexible technology solutions to global financial professionals. The company continues to benefit from a growing client base and expanding global presence. FDS maintains a performance-driven culture focused on talent and technology, with continued investment in cloud-based platforms and digital infrastructure. Strategic acquisitions have also accelerated growth. The purchases of idaciti and Irwin enhanced data collection and investor relations workflows, while the acquisitions of LiquidityBook and LogoIntern strengthened portfolio management capabilities and improved productivity for investment professionals.
The company has consistently rewarded shareholders through dividends and share repurchases, reinforcing investor confidence.
Verisk Analytics: The company offers data analytics and technology solutions to the insurance industry.
VRSK continues to strengthen the quality of its revenue stream, with subscription revenues accounting for more than 80% of total revenues in 2025, consistent with recent quarters. The company has been raising prices during contract renewals, supporting growth in annualized recurring revenue. Its transition from a transaction-based model to a subscription-driven framework enhances revenue visibility and stability. Subscription fees are typically paid in advance, either quarterly or at the start of the subscription period, supporting stronger cash flow. Additionally, markets tend to assign higher valuations to SaaS-oriented companies, creating long-term value for shareholders. New offerings such as Claims Coverage Identifier and Provider Scoring are expected to attract new clients while encouraging existing customers to adopt subscription-based solutions.
VRSK has also consistently rewarded shareholders through dividends and share repurchases, steadily increasing returns. Meanwhile, its liquidity position remains solid, with a current ratio of 1.2 at the end of the fourth quarter of 2025, above the industry level and comfortably indicating the company’s ability to meet short-term obligations.
VRSK currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for 2026 EPS has increased slightly to $7.71 over the past 30 days.
Price and Consensus: VRSK
TransUnion: It is a global consumer credit reporting company that offers risk management and information solutions.
TransUnion is well-positioned to benefit from the rapid expansion of the big data and analytics market, which is being fueled by the growing reliance on data-driven decision-making across industries. By leveraging next-generation technology to enhance its analytics capabilities and expanding its already robust database, the company is effectively capitalizing on this high-growth opportunity. These strategic advancements enable it to deliver deeper business insights more efficiently, positioning it as a key player in a market with strong long-term potential.
TRU currently carries a Zacks Rank #3. The Zacks Consensus Estimate for 2026 EPS has increased 1.5% to $4.84 over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
3 Stocks to Consider From the Booming Business Information Industry
Artificial intelligence, proprietary data and deeper workflow integration are reshaping the Zacks Business - Information Services industry. Combining AI with specialized datasets enables providers to deliver faster insights, automate processes and improve financial research, insurance analytics, credit assessment and fraud detection. FactSet (FDS - Free Report) , Verisk (VRSK - Free Report) and TransUnion (TRU - Free Report) are well positioned, although intensifying competition may pressure pricing and require clear differentiation.
Cloud-based subscription platforms also support recurring revenues, strong retention and cross-selling opportunities. By embedding analytics and productivity tools into customers’ daily operations, providers can strengthen relationships and improve revenue visibility. FactSet’s annual subscription value rose 6.7% year over year in the second quarter of fiscal 2026, while annual retention exceeded 95%. Still, clients increasingly demand measurable returns on spending.
Rising digital transactions, regulatory complexity and sophisticated fraud are boosting demand for identity, underwriting, compliance and risk solutions. Yet handling sensitive data creates cybersecurity, privacy, litigation and reputational risks.
Macroeconomic conditions remain an important variable. FactSet depends partly on financial-market spending, Verisk on insurance and catastrophe activity, and TransUnion on lending and consumer-credit volumes. Diversified, mission-critical offerings provide resilience, but prolonged weakness in capital markets, lending or customer budgets could delay purchases, intensify cost scrutiny and produce uneven growth across the industry over time.
About the Industry
The Business Information Services industry encompasses financial data, market intelligence, credit reporting, identity verification, risk assessment, insurance analytics and workflow solutions. Its participants range from financial-data platforms such as FactSet to specialized insurance-data providers like Verisk and consumer credit and identity-information companies such as TransUnion. Industry growth is increasingly driven by demand for proprietary datasets, real-time analytics, cloud-based platforms and integrated decision-support tools. Artificial intelligence is accelerating this transition by improving data processing, forecasting, fraud detection, underwriting and workflow automation, while strengthening the value of accurate and trusted information. However, rapidly evolving technology also creates competitive, pricing and investment pressures.
What's Shaping the Future of the Industry?
AI and Proprietary Data Are Reshaping Information Services: Artificial intelligence is transforming financial research, insurance analytics, credit assessment, fraud detection and decision-making. The combination of AI with proprietary, domain-specific data allows business information providers to deliver faster insights, automate workflows and develop more accurate analytical models.
This creates opportunities for FactSet, Verisk and TransUnion, which own specialized datasets across financial markets, insurance and consumer credit. However, rapidly evolving AI tools may increase competition and pricing pressure, requiring these companies to demonstrate superior accuracy, reliability and workflow value.
Subscription Platforms and Workflow Integration Support Growth:The industry continues shifting toward cloud-based subscription platforms embedded within customers’ daily workflows. These offerings improve revenue visibility, strengthen retention and create opportunities to cross-sell data, analytics and productivity solutions. FactSet’s annual subscription value increased 6.7% year over year in the second quarter of fiscal 2026, while annual ASV retention exceeded 95%.
This trend benefits FactSet and Verisk, whose platforms support essential investment and insurance decisions. TransUnion is similarly integrating credit, identity and fraud solutions into customer processes. However, customers’ focus on utilization and returns increases pressure on providers to demonstrate measurable value.
Fraud and Risk Complexity Are Increasing Demand:The expansion of digital transactions, evolving regulations and increasingly sophisticated fraud is driving demand for identity verification, credit assessment, underwriting, compliance and risk analytics. AI is improving detection capabilities, but it is also enabling criminals to conduct more targeted and scalable attacks.
This benefits TransUnion and Verisk, whose solutions help customers evaluate consumer, insurance and digital risks. TransUnion reported that one in six U.S. consumers lost money to digital fraud during the period covered by its first-half 2026 study. However, handling sensitive information also exposes providers to cybersecurity, privacy, litigation and reputational risks.
Macroeconomic Conditions Can Produce Uneven Demand: Although recurring revenues provide stability, industry demand remains sensitive to interest rates, investment activity, hiring, lending, insurance claims and consumer credit conditions. Strong capital-market activity supports demand for financial data, while expanding lending and digital commerce can increase the need for credit and fraud solutions.
This affects FactSet, Verisk and TransUnion differently. FactSet is exposed to financial-market spending, Verisk to insurance activity and catastrophe trends, and TransUnion to lending and consumer-credit volumes. Their diversified offerings and mission-critical products provide resilience, but prolonged economic weakness could delay purchases and increase customer cost pressure.
Zacks Industry Rank Indicates Encouraging Near-Term Prospects
The Business – Information Services industry is housed within the broader Zacks Business Services sector. It carries a Zacks Industry Rank of #80, placing it in the top 32% of 247 Zacks industries.
The group’s Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates underperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and current valuation.
Industry's Price Performance
Over the past year, the Zacks Business – Information Services industry has outperformed the Zacks Business Services sector but underperformed the S&P 500 Composite.
The industry has declined 13% compared with the S&P 500 Composite’s rally of 15.2% and the broader sector’s decline of 21.3% in the same time frame.
One-Year Price Performance
Industry's Price Performance
Based on the forward 12-month price-to-earnings (P/E), which is commonly used for valuing business information services stocks, the industry is currently trading at 17.67X compared with the S&P 500’s 19.76X and the sector’s 17.15X.
Over the past five years, the industry has traded at a high of 32.54X and a low of 17.1X, with a median of 25.87X.
Price to Forward 12 Months P/E Ratio
3 Business Information Service Stocks in Focus
We are presenting three stocks that are well-positioned to grow in the near term.
FactSet: The company has spent more than four decades delivering comprehensive data, advanced analytics, and flexible technology solutions to global financial professionals. The company continues to benefit from a growing client base and expanding global presence. FDS maintains a performance-driven culture focused on talent and technology, with continued investment in cloud-based platforms and digital infrastructure. Strategic acquisitions have also accelerated growth. The purchases of idaciti and Irwin enhanced data collection and investor relations workflows, while the acquisitions of LiquidityBook and LogoIntern strengthened portfolio management capabilities and improved productivity for investment professionals.
The company has consistently rewarded shareholders through dividends and share repurchases, reinforcing investor confidence.
FDS currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for fiscal 2026 EPS has been revised slightly upward to $17.77 in the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: FDS
Verisk Analytics: The company offers data analytics and technology solutions to the insurance industry.
VRSK continues to strengthen the quality of its revenue stream, with subscription revenues accounting for more than 80% of total revenues in 2025, consistent with recent quarters. The company has been raising prices during contract renewals, supporting growth in annualized recurring revenue. Its transition from a transaction-based model to a subscription-driven framework enhances revenue visibility and stability. Subscription fees are typically paid in advance, either quarterly or at the start of the subscription period, supporting stronger cash flow. Additionally, markets tend to assign higher valuations to SaaS-oriented companies, creating long-term value for shareholders. New offerings such as Claims Coverage Identifier and Provider Scoring are expected to attract new clients while encouraging existing customers to adopt subscription-based solutions.
VRSK has also consistently rewarded shareholders through dividends and share repurchases, steadily increasing returns. Meanwhile, its liquidity position remains solid, with a current ratio of 1.2 at the end of the fourth quarter of 2025, above the industry level and comfortably indicating the company’s ability to meet short-term obligations.
VRSK currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for 2026 EPS has increased slightly to $7.71 over the past 30 days.
Price and Consensus: VRSK
TransUnion: It is a global consumer credit reporting company that offers risk management and information solutions.
TransUnion is well-positioned to benefit from the rapid expansion of the big data and analytics market, which is being fueled by the growing reliance on data-driven decision-making across industries. By leveraging next-generation technology to enhance its analytics capabilities and expanding its already robust database, the company is effectively capitalizing on this high-growth opportunity. These strategic advancements enable it to deliver deeper business insights more efficiently, positioning it as a key player in a market with strong long-term potential.
TRU currently carries a Zacks Rank #3. The Zacks Consensus Estimate for 2026 EPS has increased 1.5% to $4.84 over the past 60 days.
Price and Consensus: TRU