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Equifax Inc. (EFX) is a global data, analytics, and technology company with a market cap of $36.8 billion. Based in Atlanta, Georgia, the company provides data-driven solutions across sectors, including financial services, government, and healthcare.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Equifax fits this criterion perfectly. The company is one of the top three credit bureaus in the U.S., known for its market leadership and strong brand reputation.
The company plays a crucial role in lenders' credit decisions through its credit reports and workforce solutions, which account for over 40% of its revenue. This diversified business model extends beyond traditional credit reporting, offering income verification and human resources services across various industries.
The leading credit company's shares are currently trading 3.9% below the 52-week high of $309.63, achieved on Sept. 16. Over the past three months, EFX's shares have risen 23.1%, outperforming Fidelity Disruptive Finance ETF (FDFF) 10.9% gain over the same period.
Over the longer term, EFX's stock is up 20.3% on a YTD basis, outpacing FDFF's 12.6% gains. Additionally, EFX's shares have surged 52.6% over the past 52 weeks, while FDFF has returned 26% during the same period.
To confirm the bullish price trend, EFX's stock has been trading above its 200-day moving average since early May and over its 50-day moving averages since mid-July.
Robust demand and the rise of data use have boosted EFX’s price performance this year. Additionally, EFX stock surged 1.9% following its Q2 earnings release on Jul. 17 as the company's adjusted profit of $1.82 per share exceeded Wall Street's expectations.
Also, EFX has outperformed its rival, Verisk Analytics, Inc. (VRSK). VRSK's shares have increased 7.5% over the past 52 weeks and nearly 10.8% on a YTD basis, compared to EFX's stellar performance in both these periods.
Considering Equifax's strong price action, analysts are extremely optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 18 analysts covering it, and the mean price target of $301.47 indicates a premium of just 1.3% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
