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Here's Why You Should Retain Equifax Stock in Your Portfolio Now

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Key Takeaways

  • EFX added 35 patents in 2025, advancing AI, fraud detection and data analytics on its Equifax Cloud.
  • New tools like Optimal Path and B2bConnect boost personalization, lead generation and market reach.
  • Operating expenses rose 3.6% in Q1 2025, continuing a multi-year trend of rising cost pressures.

Equifax (EFX - Free Report) stock has had a mixed run over the year. Shares of the company have risen 5.7%, outperforming the 8.5% fall of the Consulting Services industry. However, the Zacks S&P 500 composite has gained 9.4% during the same time frame.

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EFX’s revenues are anticipated to increase 5.6% and 10.5% year over year in 2025 and 2026, respectively. Earnings are estimated to rise 4.4% in 2025 and 21.8% in 2026. The company has an estimated long-term (three to five years) earnings per share growth rate of 13.3%.

Factors That Augur Well for EFX’s Prospects

Equifax's tech-savvy initiatives are commendable, as it secured 35 new patents in early 2025, raising its global total to nearly 650. These patents strengthen the company’s capabilities in responsible AI, machine learning, fraud detection and data analytics. By leveraging the Equifax Cloud and EFX.AI, Equifax delivers faster, more secure and more accurate solutions. With innovations like automated model development and advanced fraud prevention tools, the company positions itself as a leading force in tech-driven data intelligence.

Equifax’s launch of the Optimal Path interactive score planner marks a significant step toward personalized credit improvement. Powered by EFX.AI and the Equifax Cloud, it provides consumers with tailored, monthly action plans to reach their VantageScore 3.0 goals. Unlike static tools, Optimal Path uses real-time AI insights and past consumer patterns to suggest the most impactful steps, like lowering credit utilization or paying down debt. Available via API, it can be easily integrated into financial wellness platforms, making it a powerful tool for organizations helping users build better financial futures.

EFX's customer-friendly initiatives bode well for the company, as shown by its recent redesign of the U.S. consumer credit report. The new format features clear visuals and color-coded sections, and includes the VantageScore 3.0 with simple explanations of key credit factors. Aligned with the myEquifax app and powered by the Equifax Cloud, the redesign makes credit information easier to understand and reflects the company’s ongoing commitment to empowering consumers.

Equifax has launched B2bConnect on the Equifax Cloud, giving B2B marketers near real-time access to data on more than 67 million U.S. small and medium-sized businesses. The platform offers a user-friendly interface with powerful filtering and list-building tools and exports high-quality, compliant business data to improve targeting and campaign efficiency. With a simple interface and support for CRM integration, B2bConnect helps marketers find better leads faster while staying compliant with data regulations.

This B2bConnect is helping Equifax expand beyond credit reporting by tapping into the B2B marketing space. It opens new revenue streams, attracts more business clients and strengthens the company’s position as a cloud-based data solutions provider. The platform also supports its digital transformation while reinforcing its commitment to data compliance and innovation.

EFX: Risks on Radar

Equifax is facing mounting pressure from rising operating expenses, which are weighing on its profitability and overall outlook. The company has shown a clear trend of escalating costs, with operating expenses jumping 7% year over year in 2023 and rising another 7% in 2024. This trend continued into the first quarter of 2025, with expenses increasing 3.6% year over year. Sustained cost growth at this pace could erode margins and limit EFX’s ability to invest in strategic initiatives, making expense management a key area to watch moving forward.

EFX’s Zacks Rank & Stocks to Consider

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

Some better-ranked stocks from the broader Zacks Business Services sector are Green Dot (GDOT - Free Report) and AppLovin (APP - Free Report) .

Green Dot sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

GDOT has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average beat is 5.6%.

AppLovin currently sports a Zacks Rank of 1.

APP has an encouraging earnings surprise history, having outpaced the Zacks Consensus estimate in each of the trailing four quarters. The average beat is 22.9%.


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