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TransUnion (TRU) Rises 28% in 3 Months: What You Should Know

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TransUnion (TRU - Free Report) has had an impressive run over the past three months. The stock has gained 27.8%, outperforming the 15.4% rise of the industry it belongs to and the 10.7% rally of the Zacks S&P 500 composite.

What’s Driving the Stock

TransUnion’s addressable market includes the burgeoning Big Data and analytics market, which is expanding at a rapidly accelerating pace as companies realize the advantages of building an analytical enterprise where decisions are derived from data and insights.

Numerous underlying trends are supporting this market growth. These trends include the creation of massive amounts of data, advances in technology and analytics that allow data to be processed more swiftly and efficiently, and mounting demand for these business insights across industries and geographies.

To capitalize on the immense potential growth, TransUnion has leveraged its next-generation technology to strengthen its analytics capabilities and has 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 build the contacts and data that TRU already has. This fortifies its ability to sustain its competitive advantage and protect its market share.

The April 2022 acquisition of Verisk Financial Services is helping TransUnion offer enhanced insights and solutions, as well as improve fraud prevention and risk management. The September 2021 acquisition of Neustar has strengthened TRU’s competitive position in the fast-growing digital marketing and identity fraud marketplaces. These buyouts are helping the company with new market entry and portfolio diversification.

Zacks Rank and Stocks to Consider

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

Investors interested in the Zacks Business Services sector can consider the following better-ranked stocks:

Maximus (MMS - Free Report) : MMS carries a Zacks Rank of 2 (Buy) at present and has a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company has an impressive earnings surprise history, beating the consensus mark in three of the trailing four quarters and missing once, the average surprise being 9.6%.

Green Dot (GDOT - Free Report) : GDOT currently carries a Zacks Rank #2 and has a VGM Score of A.

The company has an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters, with an average surprise of 37.3%.


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