TransUnion TRU stock has surged by 51.3%, surpassing the growth of its industry by 20.3% and outpacing the Zacks S&P 500 composite by 17.5% over the past year.
With an anticipated long-term EPS growth rate of 21.8%, TransUnion’s earnings are set to climb by 15.1% in 2024 and a further 18% in 2025. Revenue projections also show promising signs with an expected 8% increase in 2024 and 7.5% in 2025.
TransUnion Price and EPS Surprise
TransUnion price-eps-surprise | TransUnion Quote
Promising Factors for TRU
TransUnion’s strategic efforts in delivering tailored financial products and services have garnered praise. Collaborating with MoneyLion has enabled the integration of TransUnion’s extensive data with MoneyLion’s innovative platform, improving consumer finance and empowering financial institutions to make well-informed decisions. This strategic alignment sets the stage for future success in a highly competitive market.
Through the consolidation of products into integrated suites on a modern foundation, TransUnion is poised to drive innovation and efficiency while reducing costs. Embracing this approach enables the leveraging of solutions across regions, fostering revenue growth and enhanced operational efficiency, ensuring a robust position in the marketplace.
TransUnion’s commitment to rewarding shareholders is evident through its consistent dividend payouts. With a strong track record of dividend increments, the company’s recent declaration of a cash dividend of 10.5 cents per share in the second quarter of 2024 underscores its dedication to enhancing shareholder value and confidence.
Having a current ratio of 1.66 at the end of the second quarter of 2024, TransUnion’s liquidity position appears robust, signaling its ability to manage short-term debts effectively.
Risks and Challenges Ahead for TRU
TransUnion faces the challenge of escalating operating expenses, with costs rising by 6% year over year in the second quarter of 2024. This consistent uptrend, with expenses climbing by 14%, 34%, and 20% in 2021, 2022, and 2023 respectively, may impact the company’s profitability in the coming periods.
Intense competition across various business segments, geographic locations, and industry verticals poses a threat to TransUnion’s earnings potential. Heightened competitive pressures limit the company’s pricing power and pose challenges to sustaining earnings growth.
TRU’s Zacks Rank and Comparative Stocks
TransUnion currently holds a Zacks Rank #3 (Hold).
Noteworthy stocks in the broader Zacks Business Services sector include SPX Technologies, Inc. SPXC and Docusign DOCU.
SPX Technologies boasts a Zacks Rank of 2 (Buy) and anticipates a long-term earnings growth of 18%. Meanwhile, SPXC has delivered a trailing four-quarter earnings surprise averaging 10.6%.
Docusign holds a Zacks Rank of 1 with a long-term earnings growth projection of 9.3%. DOCU has exhibited an average trailing four-quarter earnings surprise of 18.3%.
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