CoreLogic, Inc. (CLGX - Free Report) performed extremely well year to date and has the potential to sustain the momentum going 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 check out what makes the stock an attractive pick.
A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse year to date. Shares of CoreLogic have surged 54.7% compared with 3.9% growth of the industry it belongs to.
Solid Zacks Ranks
CoreLogic has a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions
The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Three estimates for 2020 moved north in the past 60 days versus no downward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2020 moved up 4.6%.
CoreLogic has an impressive earnings-surprise history, having surpassed the Zacks Consensus Estimate in there of the last four quarters and missing the same once. It has a trailing four-quarter earnings surprise of 5.6%, on average.
CoreLogic is one of those few firms that are sailing through the tough economic times as well as maintaining dividend payouts and share repurchases.
The company reaffirmed its plans to repurchase at least $500 million worth of shares in 2020, $300 million in 2021 and $200 million in 2022, to complete its current $1 billion authorization. Concurrent with the second-quarter 2020 results, the company’s board approved a 50% dividend hike, raising the quarterly cash dividend from 22 cents to 33 cents per share.
Recently, CoreLogic raised its 2020 and 2021 guidance.
For 2020, the company now expects revenues in the range of $1.920-$1.945 billion compared with the prior guidance of $1.86-$1.895 billion. Adjusted EBITDA is now anticipated between $615 million and $630 million compared with the prior guidance of $580-$600 million. The company anticipates double-digit revenue growth during the second half of 2020, with at least upper single-digit organic growth and margin expansion of at least 300 basis points year over year.
For 2021, the company now expects revenues of $1.965-$2.010 billion compared with the prior guidance of $1.91-$1.95 billion. Adjusted EBITDA is now anticipated between $635 million and $660 million compared with the prior guidance of $595-$615 million.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are Republic Services (RSG - Free Report) , TransUnion (TRU - Free Report) and ICF International (ICFI - Free Report) , each carrying a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for Republic Services, TransUnion and ICF International is 7.9%, 14% and 10%, respectively.
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