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Here's Why You Should Retain TransUnion (TRU) Stock for Now
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TransUnion’s (TRU - Free Report) shares have charted a solid trajectory recently, appreciating 22.6% in the past year compared with a 13.3% rise of the industry it belongs to.
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The company’s earnings and revenues for 2021 are expected to increase 25.7% and 13.8% respectively, year over year. The company has a trailing four-quarter earnings surprise of 7%, on average.
What’s Supporting the Rally?
TransUnion’s successful acquisition strategy played an important role in its growth over the last five to six years. The strategy focuses on investment in unique and differentiated data assets, acquiring new capabilities for expanding in vertical markets and expanding international footprints. Recently, the company completed the acquisition of Sontiq for $638 million. The combination of TransUnion and Sontiq is likely to offer a comprehensive set of omnichannel solutions for consumers and businesses and protect them against cyber threats. The combination should generate significant growth opportunities for TransUnion. Some other buyouts include TruSignal, Rubixis, Callcredit, iovation and Healthcare Payment Specialists, among others.
As emerging market economies continue to develop and mature, TransUnion is well-positioned to gain from the associated favorable socio-economic trends. Increased risk of identity theft due to data breaches and higher consumer awareness about the importance and usage of their credit information are propelling the demand for TransUnion’s consumer solutions.
Some Risks
TransUnion has a debt-laden balance sheet. The company’s cash and cash equivalent of $709 million at the end of third-quarter 2021 was well below its long-term debt level of $3.3 billion, underscoring that the company doesn’t have enough cash to clear this debt burden. The cash level, nevertheless, can meet the short-term debt of $77 million.
Some other top-ranked stocks in the broader Business Services sector are Avis Budget (CAR - Free Report) and Cross Country Healthcare (CCRN - Free Report) , both sporting a Zacks Rank #1, and Charles River Associates (CRAI - Free Report) , carrying a Zacks Rank #2 (Buy).
Avis Budget has an expected earnings growth rate of 453.5% for the current year. The company has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 518.6% in the past year. The company has a long-term earnings growth of 18.8%.
Cross Country Healthcare has an expected earnings growth rate of 500% for the current year. The company has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 170.4% in the past year. The company has a long-term earnings growth of 21.5%.
Charles River Associates has an expected earnings growth rate of 61.2% for the current year. The company has a trailing four-quarter earnings surprise of 51%, on average.
Charles River’s shares have surged 75.4% in the past year. The company has a long-term earnings growth of 15.5%.
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Here's Why You Should Retain TransUnion (TRU) Stock for Now
TransUnion’s (TRU - Free Report) shares have charted a solid trajectory recently, appreciating 22.6% in the past year compared with a 13.3% rise of the industry it belongs to.
The company’s earnings and revenues for 2021 are expected to increase 25.7% and 13.8% respectively, year over year. The company has a trailing four-quarter earnings surprise of 7%, on average.
What’s Supporting the Rally?
TransUnion’s successful acquisition strategy played an important role in its growth over the last five to six years. The strategy focuses on investment in unique and differentiated data assets, acquiring new capabilities for expanding in vertical markets and expanding international footprints. Recently, the company completed the acquisition of Sontiq for $638 million. The combination of TransUnion and Sontiq is likely to offer a comprehensive set of omnichannel solutions for consumers and businesses and protect them against cyber threats. The combination should generate significant growth opportunities for TransUnion. Some other buyouts include TruSignal, Rubixis, Callcredit, iovation and Healthcare Payment Specialists, among others.
As emerging market economies continue to develop and mature, TransUnion is well-positioned to gain from the associated favorable socio-economic trends. Increased risk of identity theft due to data breaches and higher consumer awareness about the importance and usage of their credit information are propelling the demand for TransUnion’s consumer solutions.
Some Risks
TransUnion has a debt-laden balance sheet. The company’s cash and cash equivalent of $709 million at the end of third-quarter 2021 was well below its long-term debt level of $3.3 billion, underscoring that the company doesn’t have enough cash to clear this debt burden. The cash level, nevertheless, can meet the short-term debt of $77 million.
Zacks Rank and Stocks to Consider
TransUnion currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the broader Business Services sector are Avis Budget (CAR - Free Report) and Cross Country Healthcare (CCRN - Free Report) , both sporting a Zacks Rank #1, and Charles River Associates (CRAI - Free Report) , carrying a Zacks Rank #2 (Buy).
Avis Budget has an expected earnings growth rate of 453.5% for the current year. The company has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 518.6% in the past year. The company has a long-term earnings growth of 18.8%.
Cross Country Healthcare has an expected earnings growth rate of 500% for the current year. The company has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 170.4% in the past year. The company has a long-term earnings growth of 21.5%.
Charles River Associates has an expected earnings growth rate of 61.2% for the current year. The company has a trailing four-quarter earnings surprise of 51%, on average.
Charles River’s shares have surged 75.4% in the past year. The company has a long-term earnings growth of 15.5%.