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5 Reasons to Include TransUnion (TRU) in Your Portfolio

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A wise investment decision involves buying well-performing stocks at the right time while selling those that are at risk. A rise in share price and strong fundamentals signal a stock’s bullish run.

TransUnion (TRU - Free Report) , a business-information services company, performed extremely well in the past year and has the potential to carry the momentum forward. Therefore, if you have not taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.

Share Price Performance: A glimpse of the company’s price trend reveals that the stock has had an impressive run in the past year. TransUnion’s shares have gained 18.5% compared with 5.7% rise of the Zacks S&P 500 composite.

Solid Rank & VGM Score: TransUnion has a Zacks Rank #1 (Strong Buy) and a Value Growth Momentum Score (VGM Score) of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or #2 (Buy) offer the best investment opportunities for investors. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: Four estimates for 2020 moved north in the past 60 days versus no southward revision, reflecting analysts’ optimism in the company. Over the same period, the Zacks Consensus Estimate for 2020 rose 3.3%.

Positive Earnings Surprise History: TransUnion has an impressive earnings surprise history. The company has a trailing four-quarter positive earnings surprise of 6.5%, on average.

Growth Prospects

TransUnion is benefitting from Big Data and analytics market, which is expanding at a rapid pace as companies comprehend the advantages of building an analytical enterprise where decisions are derived from data and insights.

The company’s business model ensures highly recurring and diversified revenue streams. During the first quarter, the U.S. Market revenues climbed 14% year over year on a reported as well as on an organic basis. Also, International revenues rose 8% year over year on a reported basis and 12% on a constant-currency basis to $158 million.

TransUnion Revenue (TTM)

TransUnion Revenue (TTM)

TransUnion revenue-ttm | TransUnion Quote

Key acquisitions like Rubixis, Callcredit, iovation, Healthcare Payment Specialists and TruSignal extended the company’s geographic foothold and accelerated its organic growth.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are Elastic N.V. (ESTC - Free Report) , SailPoint Technologies Holdings, Inc. and DocuSign, Inc. (DOCU - Free Report) , each carrying a Zacks Rank #2.

Long-term earnings (three to five years) growth rate for Elastic, SailPoint Technologies and DocuSign is estimated at 26%, 15% and 31.2%, respectively.

Zacks’ Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.

This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.

Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.

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