We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CoreLogic (CLGX) Stock Up 8% in a Year: What's Driving It?
Read MoreHide Full Article
Shares of CoreLogic, Inc. have gained 8% over the past year against 0.8% decline of the industry it belongs to.
Let’s delve deeper into the factors, which have contributed to the company’s outperformance.
Consecutive Earnings & Revenue Beat
CoreLogic came up with better-than-expected earnings and revenue performance in the last four quarters. While the top line benefited from strength in the company’s core mortgage and insurance and spatial solutions, the bottom line was aided by revenue growth, operating leverage, better business mix and cost efficiency programs.
Operational Efficacy
CoreLogic is focused on operational excellence. Notably, during first-quarter 2020, adjusted EBITDA of $130 million improved 33% year over year. Adjusted EBITDA margin was 29%, up 600 basis points (bps). Operating income of $67 million soared more than 100% and operating margin increased a whopping 1000 bps to 15%.
It targets at least 30% adjusted EBITDA margin during 2020 by managing costs, consolidating facilities, simplifying the organization and automating certain activities. This should keep the bottom line in good shape in the foreseeable future.
Strategic Acquisitions
Acquisitions have helped CoreLogic increase its market share in mortgage, real estate, insurance, capital markets, public sector and rental property markets. The company continues to explore acquisition opportunities that complement its strength and reduce risks. In 2018, CoreLogic acquired eTech Solutions, Breakaway Holdings, a la mode technologies and Symbility Solutions for total net cash of $219.6 million. In 2019, CoreLogic completed the acquisition of National Tax Search for total net cash of around $13.2 million. In 2020 so far, the company has completed the acquisition of Location, Inc., a leader in geographic data sciences and predictive, location-based analytics for businesses across the United States and Canada.
Zacks Rank and Other Stocks to Consider
CoreLogic currently carries a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for DocuSign, SPS Commerce and SailPoint is 46.8%, 15% and 15%, respectively.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
CoreLogic (CLGX) Stock Up 8% in a Year: What's Driving It?
Shares of CoreLogic, Inc. have gained 8% over the past year against 0.8% decline of the industry it belongs to.
Let’s delve deeper into the factors, which have contributed to the company’s outperformance.
Consecutive Earnings & Revenue Beat
CoreLogic came up with better-than-expected earnings and revenue performance in the last four quarters. While the top line benefited from strength in the company’s core mortgage and insurance and spatial solutions, the bottom line was aided by revenue growth, operating leverage, better business mix and cost efficiency programs.
Operational Efficacy
CoreLogic is focused on operational excellence. Notably, during first-quarter 2020, adjusted EBITDA of $130 million improved 33% year over year. Adjusted EBITDA margin was 29%, up 600 basis points (bps). Operating income of $67 million soared more than 100% and operating margin increased a whopping 1000 bps to 15%.
It targets at least 30% adjusted EBITDA margin during 2020 by managing costs, consolidating facilities, simplifying the organization and automating certain activities. This should keep the bottom line in good shape in the foreseeable future.
Strategic Acquisitions
Acquisitions have helped CoreLogic increase its market share in mortgage, real estate, insurance, capital markets, public sector and rental property markets. The company continues to explore acquisition opportunities that complement its strength and reduce risks. In 2018, CoreLogic acquired eTech Solutions, Breakaway Holdings, a la mode technologies and Symbility Solutions for total net cash of $219.6 million. In 2019, CoreLogic completed the acquisition of National Tax Search for total net cash of around $13.2 million. In 2020 so far, the company has completed the acquisition of Location, Inc., a leader in geographic data sciences and predictive, location-based analytics for businesses across the United States and Canada.
Zacks Rank and Other Stocks to Consider
CoreLogic currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Business Services sector are DocuSign, Inc. (DOCU - Free Report) , SPS Commerce (SPSC - Free Report) and SailPoint Technologies Holdings, Inc. . All the stocks carry a Zacks Rank #2. 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 DocuSign, SPS Commerce and SailPoint is 46.8%, 15% and 15%, respectively.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>