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Reasons to Retain Equifax (EFX) Stock in Your Portfolio
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Equifax Inc. (EFX - Free Report) remains focused on the expansion of its customer base through cloud data and technology transformation.
EFX has an expected long-term (three to five years) earnings per share growth rate of 11.7%. The stock has gained 8.1% in the past year.
Factors That Augur Well
The company’s ongoing cloud data and technology transformation is aimed at driving innovation and product development and strengthening 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.
Equifax remains focused on expanding and strengthening its customer base with efforts to deliver multi-data solutions by expanding differentiated data assets and analytics through organic growth, mergers and acquisitions, and partnerships. The company uses proprietary advanced analytical platforms, machine learning, artificial intelligence and advanced visualization tools.
The recent acquisition of Boa Vista Serviços, which is now a wholly-owned subsidiary of Equifax Brasil, has expanded the company's footprint in the large and fast-growing Brazilian total addressable market.
Some Risks
Equifax has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of second-quarter 2023 was $164 million compared with the long-term debt level of $5.5 billion. Further, the cash level can't meet the short-term debt of $169 million.
Zacks Rank and Stocks to Consider
Equifax currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the broader Business Service sector that investors may consider:
Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the four previous quarters and matched once, with an average surprise of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, indicating an 8.2% decrease from the year-ago reported figure. Its earnings are pegged at $5.71 per share for 2023, suggesting 14% growth from the year-ago reported figure. VRSK currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data (ADP - Free Report) currently has a Zacks Rank of 2. The company beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies year-over-year growth of 6.3% and 11.1%, respectively.
Broadridge (BR - Free Report) currently carries a Zacks Rank of 2. It beat the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings suggests a rise of 7.2% and 8.8% year over year, respectively.
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Reasons to Retain Equifax (EFX) Stock in Your Portfolio
Equifax Inc. (EFX - Free Report) remains focused on the expansion of its customer base through cloud data and technology transformation.
EFX has an expected long-term (three to five years) earnings per share growth rate of 11.7%. The stock has gained 8.1% in the past year.
Factors That Augur Well
The company’s ongoing cloud data and technology transformation is aimed at driving innovation and product development and strengthening 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.
Equifax, Inc. Revenue (TTM)
Equifax, Inc. revenue-ttm | Equifax, Inc. Quote
Equifax remains focused on expanding and strengthening its customer base with efforts to deliver multi-data solutions by expanding differentiated data assets and analytics through organic growth, mergers and acquisitions, and partnerships. The company uses proprietary advanced analytical platforms, machine learning, artificial intelligence and advanced visualization tools.
The recent acquisition of Boa Vista Serviços, which is now a wholly-owned subsidiary of Equifax Brasil, has expanded the company's footprint in the large and fast-growing Brazilian total addressable market.
Some Risks
Equifax has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of second-quarter 2023 was $164 million compared with the long-term debt level of $5.5 billion. Further, the cash level can't meet the short-term debt of $169 million.
Zacks Rank and Stocks to Consider
Equifax currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the broader Business Service sector that investors may consider:
Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the four previous quarters and matched once, with an average surprise of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, indicating an 8.2% decrease from the year-ago reported figure. Its earnings are pegged at $5.71 per share for 2023, suggesting 14% growth from the year-ago reported figure. VRSK currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data (ADP - Free Report) currently has a Zacks Rank of 2. The company beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies year-over-year growth of 6.3% and 11.1%, respectively.
Broadridge (BR - Free Report) currently carries a Zacks Rank of 2. It beat the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings suggests a rise of 7.2% and 8.8% year over year, respectively.