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Reasons to Retain TransUnion (TRU) Stock in Your Portfolio

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TransUnion (TRU - Free Report) is currently benefiting from strength in its growth-oriented portfolio and innovations, which are leading to a strong sales performance.

The company’s top line grew 23.6% year over year in the first quarter of 2022. Its revenues for 2022 and 2023 are expected to improve 24.8% and 9.3%, respectively, year over year.

Factors That Bode Well

TransUnion’s addressable market includes the burgeoning Big Data and analytics market, which is expanding at a rapidly accelerating pace as companies understand the advantages of building an analytical enterprise where decisions are derived from data and insights. In order to capitalize on the immense growth potential in this market, TransUnion has leveraged its next-generation technology to strengthen its analytics capabilities and further expanded its database.

TransUnion’s gigantic treasure trove of data is its most distinguishing asset and also perhaps the biggest barrier to entry for competitors. Acquiring or building such data involves huge costs, making it extremely difficult for a new company to acquire the contacts and data that TransUnion already has. This fortifies TRU's ability to sustain its competitive advantage and protect its market share.

The company has made significant investments to modernize its infrastructure and facilitate the seamless transition to the latest Big Data and analytics technologies. These enable TransUnion to expand its business and improve its cost structure.

Some Risks

TransUnion's current ratio at the end of first-quarter 2022 was 1.79, lower than the current ratio of 1.94 reported at the end of the prior quarter. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.

The stock declined 29.5% over the past year compared with a 19.9% fall of the industry it belongs to.

Zacks Rank and Stocks to Consider

TRU currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors interested in the broader Zacks Business Services sector can also consider stocks like Avis Budget Group, Inc. (CAR - Free Report) and Cross Country Healthcare (CCRN - 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.

In-Depth Zacks Research for the Tickers Above

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Avis Budget Group, Inc. (CAR) - free report >>

Cross Country Healthcare, Inc. (CCRN) - free report >>

TransUnion (TRU) - free report >>