Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Automatic Data Processing, Inc. (ADP) - free report >>
Charles River Associates (CRAI) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Automatic Data Processing, Inc. (ADP) - free report >>
Charles River Associates (CRAI) - free report >>
Image: Shutterstock
Here's Why Investors Should Retain Equifax (EFX) Stock Now
Equifax Inc. (EFX - Free Report) is currently benefiting from its acquisitions and technology transformation.
EFX’s revenues are anticipated to grow 3.9% and 6.5%, in 2022 and 2023, respectively.
Factors That Augur Well
Acquisitions have been one of the key growth strategies for Equifax for a while. The recent buyout of Efficient Hire is expected to expand the company's portfolio of employer- and HR-focused solutions, thus helping its clients to better manage hiring and employment needs. Additionally, the acquisition of LawLogix positions Equifax to deliver a comprehensive set of services suitable for employers in a rapidly changing employment and regulatory environment.
EFX’s ongoing cloud data and technology transformation is aimed at driving innovation and product development as well as strengthen customer and partner integration. As part of the transformation, Equifax is migrating to a public cloud environment that engages virtual private cloud deployment techniques. The company remains focused on streamlining customers’ access to its analytical platforms.
A Key Risk
Equifax's current ratio at the end of the June quarter was pegged at 0.51, lower than the current ratio of 0.71 reported at the end of the prior-year quarter. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting short-term debt obligations.
Zacks Rank and Stocks to Consider
Equifax 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 Gartner, Inc. (IT - Free Report) , Automatic Data Processing, Inc. (ADP - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Gartner sports a Zacks Rank #1 at present. IT has an earnings growth rate of 3.4% for 2023.
Gartner delivered a trailing four-quarter earnings surprise of 25.3%, on average.
ADP carries a Zacks Rank #2 (Buy) at present. ADP has a long-term earnings growth expectation of 12%.
ADP delivered a trailing four-quarter earnings surprise of 5%, on average.
CRA International carries a Zacks Rank of 2, currently. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.