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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 $41.1 billion, the company offers data, statistical, and actuarial services, as well as standardized insurance policy programs, underwriting information, and rating-integrity tools. VRSK provides data and software information services to the property, casualty, and mortgage fields.
Shares of this leading strategic data analytics and technology company have underperformed the broader market over the past year. VRSK has gained 21.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.3%. In 2024, VRSK’s stock rose 22%, compared to the SPX’s 25.5% rise on a YTD basis.
Narrowing the focus, VRSK’s underperformance is apparent compared to the iShares U.S. Industrials ETF (IYJ). The exchange-traded fund has gained about 35.4% over the past year. Moreover, the ETF’s 25.6% gains on a YTD basis outshine the stock’s returns over the same time frame.
On Oct. 30, VRSK shares closed up more than 4% after reporting its Q3 results. Its adjusted EPS of $1.67 surpassed Wall Street expectations of $1.60. The company’s revenue was $725.3 million, surpassing Wall Street forecasts of $723.1 million. Verisk expects full-year adjusted EPS to be between $6.30 and $6.60, and expects revenue in the range of $2.8 billion to $2.9 billion.
For the current fiscal year, ending in December, analysts expect VRSK’s EPS to grow 16.1% to $6.63 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 17 analysts covering VRSK stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, two “Moderate Buys,” and eight “Holds.”
The configuration has been fairly stable over the past three months.
On Oct. 31, JPMorgan Chase & Co. (JPM) analyst Andrew Steinerman maintained a “Buy” rating on VRSK with a price target of $300, implying a potential upside of 2.9% from current levels.
The mean price target of $298 represents a 2.2% premium to VRSK’s current price levels. The Street-high price target of $325 suggests an upside potential of 11.5%.
