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Reasons Why Investors Should Retain Verisk (VRSK) Stock

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Verisk Analytics, Inc. (VRSK - Free Report) stock has risen 6.5% in the past month against the 2.6% decline of the industry and the 0.2% fall of the Zacks S&P 500 composite.

The company has an expected long-term earnings per share (three to five years) growth rate of 12.4%. Its earnings are expected to increase 8.6% in 2023 and 17.4% in 2024, year over year.

Verisk Analytics, Inc. Price

 

Factors That Augur 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 allow it 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 recently announced acquisition of Sweden-based InsurTech firm Mavera is expected to strengthen Verisk’s market position as a provider of technology and analytics to the insurance industry.

Some Risks

Verisk's current ratio (a measure of liquidity) at the end of fourth-quarter 2022 was pegged at 0.40, lower than the current ratio of 0.46 reported at the end of third-quarter 2022 and the prior-year quarter’s 0.49. A decline in the 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).

Here are some better-ranked stocks from the broader Zacks Business Services sector that investors may consider.

Omnicom Group's (OMC - Free Report) internal development initiatives and shareholder-friendly policies ensure long-term profitability. The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.4, which has been revised downward by 1.4% in the past 60 days. The consensus estimate for the full year stands at $7.15 per share. This has been revised 13.7% upward in the past 60 days.

For first-quarter 2023, OMC’s earnings are expected to improve marginally year over year. The company’s earnings are expected to grow 3.5% on a year-over-year basis in 2023. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ICF International (ICFI - Free Report) is being aided by the strong government business, courtesy of improvement in the business development pipeline and win rate. The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.41, which has been revised upward by 6% in the past 60 days. The consensus estimate for the full year stands at $6.3 per share. This has been revised 7.3% upward in the past 60 days.

For first-quarter 2023, ICFI’s earnings are expected to register 7.6% growth on a year-over-year basis. For 2023, the company’s earnings are expected to grow 9.2% on a year-over-year basis. The company currently sports a Zacks Rank #1.


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