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Why You Should Retain Verisk (VRSK) Stock in Portfolio Now

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Verisk Analytics, Inc. (VRSK - Free Report) is currently benefiting from its acquisitions and investor-friendly steps.

VRSK’s earnings and revenues are anticipated to grow 8.9% and 1.5%, respectively, in 2022.

Factors That Augur Well

VRSK has a robust growth strategy focusing on organic growth, product development and acquisitions. This strategy enabled Verisk to grow its revenues, seeing a CAGR of 10.3% over the past five years.

Acquisitions carve out Verisk’s key growth trajectory. It is continuously acquiring and investing in companies globally to expand data and analytics capabilities across industries. The 2021 buyout of Data Driven Safety further boosted VRSK’s robust auto insurance analytics.

Verisk has a consistent record of rewarding its shareholders through dividend payments and share repurchases. In 2021, VRSK paid out $188.2 million of dividends and repurchased shares worth $475 million. In 2020, VRSK paid out $175.8 million of dividends and repurchased shares worth $348.8 million. In 2019, it disbursed $163.5 million of dividends and bought back shares worth $300 million. Such moves underline its commitment to creating shareholder value and instilling confidence in its business.

A Key Risk

Verisk's current ratio (a measure of liquidity) at the end of second-quarter 2022 was 0.56, lower than the current ratio of 0.62 reported at the end of second-quarter 2021. Decreasing current ratio is not desirable as it indicates that a 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 Booz Allen Hamilton Holding Corporation (BAH - Free Report) , Paychex, Inc. (PAYX - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .

Booz Allen carries a Zacks Rank #2 at present. BAH has a long-term earnings growth expectation of 7.5%.

Booz Allen delivered a trailing four-quarter earnings surprise of 8.3%, on average.

Paychex carries a Zacks Rank of 2 at present. PAYX has a long-term earnings growth expectation of 7.5%.

Paychex delivered a trailing four-quarter earnings surprise of 8.6%, on average.

Cross Country Healthcare carries a Zacks Rank of 2, currently. CCRN has a long-term earnings growth expectation of 10%.

CCRN delivered a trailing four-quarter earnings surprise of 26%, on average.
 

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