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Why TransUnion (TRU) Should to be Retained in Your Portfolio
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TransUnion.(TRU - Free Report) ) is benefiting from its business model, which includes recurring and diversified revenue streams, high operating leverage and steady cash flows.
The company is banking on its international market presence and strong growth in financial services in emerging verticals. It has a huge database which is its biggest differentiator.
The database of TRU restricts new participants to enter this market. This lets the company protect its market share and gain a competitive advantage. TransUnion is addressing a broad range of customers and is involved in the data and analytics market, which is gaining relevance with time.
For 2023 and 2024, the company’s earnings are expected to grow 3.5% and 8.3%, respectively, on a year-over-year basis.
Headwinds like higher inflation and interest rates are limiting the company’s growth. With a probability of the loan market slowing in the recent future, large lending customers of the company are being more cautious and are tightening lending standards, reducing origination and increasing loss reserves. The company caters to a very competitive market and such tough competition restricts the use of the pricing power to its advantage.
TransUnion's current ratio at the end of fourth-quarter 2022 was pegged at 1.6, lower than the current ratio of 1.94 reported at the end of the prior-year quarter. This indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
TRU currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Business Service sector may consider the following stocks:
ICF International, Inc.(ICFI - Free Report) is being aided by the strong government business, courtesy of improvement in the business development pipeline and win rate.
ICFI reported better-than-expected fourth-quarter 2022 results. Quarterly earnings (excluding $1.09 from non-recurring items) came in at $1.56, beating the Zacks Consensus Estimate by 4.7% and increasing 31.1% from the year-ago reported figure. For first-quarter 2023, ICFI’s earnings are expected to register 6.1% growth on a year-over-year basis. For 2023, the company’s earnings are expected to grow 6.4% on a year-over-year basis.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.39, which has been revised upward by 4.5% in the past 60 days. The consensus estimate for the full year is $6.14 per share. This has been revised upward 4% in the past 60 days. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Omnicom Group Inc.'s (OMC - Free Report) internal development initiatives and shareholder-friendly policies ensure long-term profitability. OMC reported better-than-expected fourth quarter 2022 results. Earnings of $2.09 per share beat the Zacks Consensus Estimate by 7.7% and increased 7.2% year over year, driven by a strong margin performance.
For first-quarter 2023, OMC’s earnings are expected to match the year-ago reported figure of $1.39. The company’s earnings are expected to grow 3.2% on a year-over-year basis in 2023.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.39, which has been revised downward by 2.1% in the past 60 days. The consensus estimate for the full year is $7.15 per share. This has been revised upward 13.7% in the past 60 days. The company currently sports a Zacks Rank of 1.
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Why TransUnion (TRU) Should to be Retained in Your Portfolio
TransUnion.(TRU - Free Report) ) is benefiting from its business model, which includes recurring and diversified revenue streams, high operating leverage and steady cash flows.
The company is banking on its international market presence and strong growth in financial services in emerging verticals. It has a huge database which is its biggest differentiator.
The database of TRU restricts new participants to enter this market. This lets the company protect its market share and gain a competitive advantage. TransUnion is addressing a broad range of customers and is involved in the data and analytics market, which is gaining relevance with time.
For 2023 and 2024, the company’s earnings are expected to grow 3.5% and 8.3%, respectively, on a year-over-year basis.
TransUnion EPS Diluted (Quarterly)
TransUnion eps-diluted | TransUnion Quote
Some Risks
Headwinds like higher inflation and interest rates are limiting the company’s growth. With a probability of the loan market slowing in the recent future, large lending customers of the company are being more cautious and are tightening lending standards, reducing origination and increasing loss reserves. The company caters to a very competitive market and such tough competition restricts the use of the pricing power to its advantage.
TransUnion's current ratio at the end of fourth-quarter 2022 was pegged at 1.6, lower than the current ratio of 1.94 reported at the end of the prior-year quarter. This indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
TRU currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Business Service sector may consider the following stocks:
ICF International, Inc.(ICFI - Free Report) is being aided by the strong government business, courtesy of improvement in the business development pipeline and win rate.
ICFI reported better-than-expected fourth-quarter 2022 results. Quarterly earnings (excluding $1.09 from non-recurring items) came in at $1.56, beating the Zacks Consensus Estimate by 4.7% and increasing 31.1% from the year-ago reported figure. For first-quarter 2023, ICFI’s earnings are expected to register 6.1% growth on a year-over-year basis. For 2023, the company’s earnings are expected to grow 6.4% on a year-over-year basis.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.39, which has been revised upward by 4.5% in the past 60 days. The consensus estimate for the full year is $6.14 per share. This has been revised upward 4% in the past 60 days. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Omnicom Group Inc.'s (OMC - Free Report) internal development initiatives and shareholder-friendly policies ensure long-term profitability. OMC reported better-than-expected fourth quarter 2022 results. Earnings of $2.09 per share beat the Zacks Consensus Estimate by 7.7% and increased 7.2% year over year, driven by a strong margin performance.
For first-quarter 2023, OMC’s earnings are expected to match the year-ago reported figure of $1.39. The company’s earnings are expected to grow 3.2% on a year-over-year basis in 2023.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.39, which has been revised downward by 2.1% in the past 60 days. The consensus estimate for the full year is $7.15 per share. This has been revised upward 13.7% in the past 60 days. The company currently sports a Zacks Rank of 1.