Verisk Analytics, Inc.’s (VRSK - Free Report) Geomni business unit announced a technology partnership with digital visualization software developer Renoworks Software Inc., yesterday.
Initially concentrated on manufacturer and material supplier markets, the duo will serve as mutual value-added resellers of their relevant product solutions.
Jeffrey C. Taylor, president at Geomni, stated, "Renoworks visualization platform is the perfect distribution vehicle for Geomni's imagery analytics tools in the home construction market. Supporting this market by improving performance and creating significant impact in the value chain is a key strategy Geomni is pursuing to provide critical solutions for homeowners."
Shares of Verisk have fared well in a year’s time. The stock has rallied 47.4% compared with the industry’s rise of 26.1%.
A win-win Relationship
The partnership will integrate Geomni's expertise in detailed measurements and analytics with Renoworks' visualization services as well as extensive manufacturer product libraries to improve the design-to-project delivery process in construction and remodeling markets.
This is expected to provide additional growth and innovation opportunities to the companies.
The collaboration is expected to boost Verisk’s Insurance segment that includes aerial imagery and remote sensing solutions. Performance in the segment was particularly strong in the last reported quarter with revenues of $288.9 million increasing 12.3% year over year on a reported basis and 8.4% at organic constant currency (cc).
In the segment, claims revenues of $140.5 million improved 16.7% on a reported basis and 13.2% at organic cc on the back of revenues from aerial imagery solution, repair cost estimating solutions as well as claims analytics.
Zacks Rank & Key Picks
Currently, Verisk carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader Business Services Sector are WEX Inc. (WEX - Free Report) , BG Staffing, Inc. (BGSF - Free Report) and Broadridge Financial Solutions, Inc. (BR - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected earnings per share (three to five years) growth rate for WEX, BG Staffing and Broadridge is 15%, 20% and 10%, respectively.
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