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Here's Why Investors Should Hold EFX in Their Portfolios Now
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Key Takeaways
Equifax benefits from data-driven solutions, a diverse customer base and enterprise growth initiatives.
EFX's growth is supported by acquisitions, consumer credit activity, innovation and efficient execution.
Equifax faces seasonal revenue fluctuations and a 0.60 current ratio, below the industry's 1.04.
Equifax Inc. (EFX - Free Report) shares have moved up 14.8% in the past three months. The industry and the Zacks S&P 500 Composite have rallied 17.7% and 2%, respectively, over the same period.
3-Month Stock Price Performance
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 revenues is pegged at $6.7 billion. The figure is expected to increase 10.9% year over year. For 2027, the consensus estimate is $7.4 billion, suggesting a 9.3% rise from the preceding year’s actual.
For EPS, the consensus mark for 2026 is pegged at $8.56, indicating an 11.9% year-over-year rally. The Zacks Consensus Estimate for 2027 EPS is set at $10.12. The figure suggests growth of 18.2% from the preceding year’s actual.
Factors That Augur Well for EFX’s Success
Sustained Top-Line Momentum: EFX’s top line saw a compounded annual growth rate (CAGR) of 4.3% over the last five years (2021-2025). Such momentum is anticipated to endure over the long term, driven by synergies from acquisitions, continued general consumer credit activity, product innovation, initiatives to foster enterprise growth and efficient business execution.
Data-Driven Insights: Equifax’s offerings are vital to its customers as they leverage credit information and related analytical services and data to process applications for new credit cards, automobile loans, home and equity loans, and other consumer loans.
The company uses advanced statistical methods and proprietary tools to analyze all available data, delivering customized insights, decision-making solutions and processing services. This helps customers understand, manage and protect their clients’ information and make more informed financial decisions.
Diverse Customer Base: Equifax works with a diverse clientele, offering services to a diverse array of industries, including finance, mortgage, consumer, employee, telecommunications, automotive, commercial, retail, government and resellers. This massive client base is highly advantageous as it reduces risks in one sector by capitalizing on strengths in others.
EFX's strategic focus remains centered on expanding and solidifying its customer base by actively delivering multi-data solutions, which involves expanding its unique data assets and enhancing its analytics capabilities.
Risks Faced by Equifax
Seasonality Risks: EFX’s revenues from the Employer Services business unit within the company’s Workforce Solutions segment are lower in the second, third and fourth quarters compared with the first quarter. Therefore, this seasonality makes it difficult for the company to project its prospects. We expect year-over-year comparisons to be meaningful for this company, given seasonal fluctuations.
Weak Liquidity Profile: Equifax's current ratio (a measure of liquidity) at the end of the second quarter of 2026 was 0.60, lower than the preceding quarter's 0.77. It stands lower than the industry's 1.04 as well. A current ratio of less than 1 does not bode well with investors, as it suggests that the company may have problems paying off its short-term obligations.
Image Source: Zacks Investment Research
EFX’s Zacks Rank & Stocks to Consider
The company has a Zacks Rank #3 (Hold) at present.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why Investors Should Hold EFX in Their Portfolios Now
Key Takeaways
Equifax Inc. (EFX - Free Report) shares have moved up 14.8% in the past three months. The industry and the Zacks S&P 500 Composite have rallied 17.7% and 2%, respectively, over the same period.
3-Month Stock Price Performance
The Zacks Consensus Estimate for 2026 revenues is pegged at $6.7 billion. The figure is expected to increase 10.9% year over year. For 2027, the consensus estimate is $7.4 billion, suggesting a 9.3% rise from the preceding year’s actual.
For EPS, the consensus mark for 2026 is pegged at $8.56, indicating an 11.9% year-over-year rally. The Zacks Consensus Estimate for 2027 EPS is set at $10.12. The figure suggests growth of 18.2% from the preceding year’s actual.
Factors That Augur Well for EFX’s Success
Sustained Top-Line Momentum: EFX’s top line saw a compounded annual growth rate (CAGR) of 4.3% over the last five years (2021-2025). Such momentum is anticipated to endure over the long term, driven by synergies from acquisitions, continued general consumer credit activity, product innovation, initiatives to foster enterprise growth and efficient business execution.
Data-Driven Insights: Equifax’s offerings are vital to its customers as they leverage credit information and related analytical services and data to process applications for new credit cards, automobile loans, home and equity loans, and other consumer loans.
The company uses advanced statistical methods and proprietary tools to analyze all available data, delivering customized insights, decision-making solutions and processing services. This helps customers understand, manage and protect their clients’ information and make more informed financial decisions.
Diverse Customer Base: Equifax works with a diverse clientele, offering services to a diverse array of industries, including finance, mortgage, consumer, employee, telecommunications, automotive, commercial, retail, government and resellers. This massive client base is highly advantageous as it reduces risks in one sector by capitalizing on strengths in others.
EFX's strategic focus remains centered on expanding and solidifying its customer base by actively delivering multi-data solutions, which involves expanding its unique data assets and enhancing its analytics capabilities.
Risks Faced by Equifax
Seasonality Risks: EFX’s revenues from the Employer Services business unit within the company’s Workforce Solutions segment are lower in the second, third and fourth quarters compared with the first quarter. Therefore, this seasonality makes it difficult for the company to project its prospects. We expect year-over-year comparisons to be meaningful for this company, given seasonal fluctuations.
Weak Liquidity Profile: Equifax's current ratio (a measure of liquidity) at the end of the second quarter of 2026 was 0.60, lower than the preceding quarter's 0.77. It stands lower than the industry's 1.04 as well. A current ratio of less than 1 does not bode well with investors, as it suggests that the company may have problems paying off its short-term obligations.
EFX’s Zacks Rank & Stocks to Consider
The company has a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader Zacks Business Services sector are Gartner (IT - Free Report) and Coursera (COUR - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Gartner has a long-term earnings growth expectation of 21%. IT delivered a trailing four-quarter earnings surprise of 13.5%, on average.
Coursera has a long-term earnings growth expectation of 49.6%. COUR delivered a trailing four-quarter earnings surprise of 10.9%, on average.