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Reasons Why Investors Should Retain Verisk (VRSK) Stock For Now

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Verisk Analytics, Inc. (VRSK - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.

The company has an expected long-term earnings per share (three to five years) growth rate of 10.2%. Its earnings are expected to increase 7.3% in 2022 and 8.4% in 2023, year over year.

Factors That Auger Well

Verisk has a robust growth strategy that focuses on organic growth, product development and acquisitions. 

Using advanced technologies to collect and analyze data, Verisk draws on unique data assets and deep domain expertise to provide predictive analytics and decision-support solutions that are integrated into customer workflows. The company’s specialized and in-depth knowledge in markets such as energy, insurance, financial services and risk management adds value to its analytics. A steady stream of first-to-market innovations and the ability to deeply integrate into customer workflows allows VRSK to strengthen its client base over time.

Verisk has been consistently acquiring and investing in companies globally to expand its data and analytics capabilities across industries. The recent acquisition of Opta will expand Verisk’s position in the Canadian market. Their combined domain expertise, advanced technology and unique data assets should help their diverse range of clients in the insurance industry, ranging from insurers, brokers and other financial services companies to governments and risk managers.

Some Risks

Verisk's current ratio (a measure of liquidity) at the end of first-quarter 2022 was pegged at 0.47, lower than the current ratio of 0.49 reported at the end of fourth-quarter 2021 and the prior-year quarter’s 0.64. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.

Zacks Rank and Stocks to Consider

Verisk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group (CAR - Free Report) , Cross Country Healthcare (CCRN - Free Report) and CRA International (CRAI - Free Report) .

Avis Budget sports a Zacks Rank #1 at present. CAR has a long-term earnings growth expectation of 19.4%. 

Avis Budget delivered a trailing four-quarter earnings surprise of 102%, on average. 

Cross Country Healthcare sports a Zacks Rank of 1 at present. CCRN has a long-term earnings growth expectation of 6.9%.

Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 29.2%, on average. 

CRA International carries a Zacks Rank #2 (Buy), currently. CRAI has a long-term earnings growth expectation of 14.3%.

CRAI delivered a trailing four-quarter earnings surprise of 35.8%, on average.

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