Equifax Inc. (EFX) is a company that is committed to expanding its customer base through cloud data and technology transformation. With an expected long-term earnings per share growth rate of 11.7%, and a 8.1% gain in the past year, this stock presents a promising opportunity for investors and traders in the financial market.
Factors Driving Equifax’s Success
Equifax is focused on driving innovation and product development through its ongoing cloud data and technology transformation. The company is migrating to a public cloud environment, utilizing virtual private cloud deployment techniques to streamline customers’ access to its analytical platforms. By expanding its differentiated data assets and analytics, Equifax aims to deliver multi-data solutions to its customers.
The recent acquisition of Boa Vista Serviços has also expanded Equifax’s footprint in the fast-growing Brazilian market, further strengthening its position as a leader in the industry.
Some Risks to Consider
While Equifax has shown strong growth potential, it is important to consider the risks involved. The company has more long-term debt outstanding than cash, with a cash level that may not meet its short-term debt obligations. However, these risks can be managed with proper financial planning and strategic decision-making.
Stocks to Consider in the Business Service Sector
For investors looking to diversify their portfolio, there are several better-ranked stocks in the broader Business Service sector:
1. Verisk Analytics (VRSK)
Verisk Analytics has consistently beaten the Zacks Consensus Estimate, with an average surprise of 9.9%. Despite a projected 8.2% decrease in revenues for 2023, its earnings are expected to grow by 14% compared to the previous year. With a Zacks Rank of #2 (Buy), Verisk Analytics presents a strong investment opportunity.
2. Automatic Data (ADP)
Automatic Data has consistently beaten the Zacks Consensus Estimate, with an average surprise of 3.1%. The company is expected to experience year-over-year growth in both revenues and earnings for fiscal 2023. With a Zacks Rank of #2, Automatic Data is a solid choice for investors.
3. Broadridge (BR)
Broadridge has beaten the Zacks Consensus Estimate in two of the trailing four quarters, with a modest average surprise of 0.5%. The company is expected to see a rise in revenues and earnings for fiscal 2024. With a Zacks Rank of #2, Broadridge is a promising investment option.
Conclusion: Should You Retain Equifax (EFX) Stock in Your Portfolio?
Equifax’s focus on cloud data and technology transformation, along with its efforts to expand and strengthen its customer base, make it an attractive stock for investors. While there are some risks to consider, proper financial planning can help mitigate these challenges. Additionally, considering other well-performing stocks in the Business Service sector can further diversify your portfolio and potentially boost your returns.
Investors looking for insightful market analysis and commentary on Equifax and other stocks can visit Zacks Investment Research for more information.