A wise investment decision involves buying well-performing stocks at the right time, while selling those that are at risk. A rise in share price and strong fundamentals signal a stock’s bullish run.
CoreLogic, Inc. (CLGX - Free Report) is a consulting company that performed well in the past year and has the potential to carry the momentum forward. Therefore, if you have not taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
Share Price Performance
A glimpse of the company’s price trend reveals that the stock has had an impressive run in the past year. CoreLogic’s shares have surged 37.2% compared with the 19.8% rally of the industry it belongs to.
CoreLogic sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) offer attractive investment opportunities. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions
Six estimates for 2020 moved north in the past 60 days versus no downward revision, reflecting analysts’ confidence in CoreLogic. Over the same period, the Zacks Consensus Estimate for 2020 moved up 23.6%.
Positive Earnings Surprise History
CoreLogic has an impressive earnings surprise history. The company outpaced the consensus mark in three of the last four quarters (missing the same in one). It has a trailing four-quarter positive earnings surprise of 5.6%, on average.
Strong Growth Prospects
The Zacks Consensus Estimate for 2020 earnings is currently pegged at $3.67, which indicates year-over-year growth of 29.7%. The stock has a long-term expected earnings per share growth rate of 12%.
CoreLogic is benefiting from operational capabilities, data and technology platforms business mix, cost productivity, and acquisitions. It continues to focus on apt reinvestment in platform solutions, human capital and infrastructure, returning capital to shareholders as well as prudent management of debt levels.
On 23 Jul, CoreLogic announced that its board of directors has declared a 50% increase in the company’s quarterly cash dividend to common shareholders. The company will pay a cash dividend of 33 cents per share on Sep 15 to shareholders as of record date Sep 1. The company most recently paid out a dividend worth 22 cents per share of common stock on June 15. Such moves indicate the company’s commitment to boost value for its shareholders and confidence in business.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are Elastic N.V. (ESTC - Free Report) , FactSet Research Systems Inc. (FDS - Free Report) and TransUnion (TRU - Free Report) . All the stocks carry a Zacks Rank #2 (Buy).
Long-term earnings (three to five years) growth rates for Elastic, FactSet and TransUnion are estimated at 26%, 8.5% and 14%, respectively.
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