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Jersey City, New Jersey-based Verisk Analytics, Inc. (VRSK) provides data analytics and technology solutions to the insurance markets. With a market cap of $38.3 billion, the company offers data, statistical, and actuarial services, as well as standardized insurance policy programs, underwriting information, and rating-integrity tools.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and VRSK perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the consulting services industry.
Verisk solidifies its market leadership in insurance data analytics through its strong brand and innovative solutions. Its proprietary databases and analytical tools are essential for underwriting, claims, and fraud detection. Besides, ongoing investments in improving models and content have boosted sales to new and existing customers, solidifying its dominant position in the industry.
Despite its notable strength, VRSK slipped 6.4% from its 52-week high of $287.13, achieved on Jul. 30. Over the past three months, VRSK stock has gained 2.5%, underperforming the S&P 500 Index’s ($SPX) 3.5% gains during the same time frame.
In the longer term, shares of VRSK rose 12.5% on a YTD basis and climbed 9.5% over the past 52 weeks, underperforming SPX’s YTD gains of 18% and solid 25.9% returns over the last year.
To confirm the bearish trend, VRSK has been trading below its 50-day moving average recently. However, it is trading above its 200-day moving average since early May, indicating a long-term bullish trend.
VRSK’s overall performance can be attributed to its weaker-than-anticipated results in underwriting and rating revenue in the second quarter, as well as claim revenue, compounded by full-year sales guidance that fell short of market expectations.
On Jul. 31, VRSK shares closed down more than 8% after reporting its Q2 earnings results. While its adjusted EPS of $1.74 exceeded Wall Street expectations of $1.63, the company’s revenue was $716.8 million, falling short of Wall Street forecasts of $722.5 million.
In the competitive arena of consulting services, Equifax Inc. (EFX) has taken the lead over VRSK, showing resilience with a 24% uptick on a YTD basis and solid 55.5% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on VRSK’s prospects. The stock has a consensus “Moderate Buy” rating from the 16 analysts covering it, and the mean price target of $277.23 suggests a potential upside of 3.1% from current price levels.
On the date of publication, Neha Panjwani 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.
