CoreLogic, Inc. ( CLGX Quick Quote CLGX - Free Report) scaled a 52-week high of $79.19 in the trading session on Nov 19, before closing a tad lower at $79.02.
The company’s shares have charted a solid trajectory in recent times, appreciating 80.8% year to date, much ahead of 12.7% growth of the
industry it belongs to.
Notably, CoreLogic has witnessed a 15.5% rise in share price since it posted third-quarter 2020 results.
Let’s find out what’s supporting the uptick.
Consecutive Earnings & Revenue Beat
CoreLogic came up with better-than-expected earnings and revenue performance in five of the last six quarters. The top line benefited from strength in the company’s core mortgage and insurance, and spatial solutions. The bottom line was aided by revenue growth, operating leverage, better business mix, and cost-efficiency programs.
Shareholder Friendly Initiatives
Although many companies across diverse sectors have suspended dividend payouts and share buybacks amid the coronavirus crisis, CoreLogicremains one of those few that are sailing through the tough economic times while also maintaining dividend payouts and share repurchases.
The company has 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 had approved a 50% dividend hike, raising the quarterly cash dividend from 22 to 33 cents per share.
Notably, CoreLogic has a track record of consistent share repurchases and dividend payments. Such shareholder friendly moves not only instill investor confidence but also positively impact earnings per share.
Contributions From Acquisitions
Acquisitions overtime have helped CoreLogic increase its market share in mortgage, real estate, insurance, capital markets, public sector and rental property markets. CoreLogic’s January 2020 acquisition of Location, Inc. will likely enhance the company’s offering for property and casualty insurance by expanding capabilities in predictive, location-based analytics. In 2019, CoreLogic acquired National Tax Search to expand commercial tax capabilities for its customers.
Zacks Rank and Stocks to Consider
CoreLogic currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks
Business Services sector are ICF International ( ICFI Quick Quote ICFI - Free Report) , Automatic Data Processing ( ADP Quick Quote ADP - Free Report) and Insperity ( NSP Quick Quote NSP - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
The long-term expected earnings per share (three to five years) growth rate for ICF International, Automatic Data Processing and Insperity is 10%, 12% and 15%, respectively.
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