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Shares of CoreLogic, Inc. have gained 5.7% year to date against 1.7% 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 all the four quarters of 2019. 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.
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.
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.
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 31.2%, 15% and 15%, respectively.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time. See 8 breakthrough stocks now>>
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CoreLogic (CLGX) Stock Rises 5.7% YTD: What's Driving It?
Shares of CoreLogic, Inc. have gained 5.7% year to date against 1.7% 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 all the four quarters of 2019. 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.
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.
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.
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 (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 31.2%, 15% and 15%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>