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Established in 1971, New Jersey-based Verisk Analytics, Inc. (VRSK) provides advanced data analytics services to customers in insurance, energy, specialized markets, and financial services. The company leverages unique data assets and deep domain expertise and integrates innovations into customer workflows. With a market cap of $38.6 billion, Verisk operates through three segments: Insurance, Energy and Specialized Markets, and Financial Services.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Verisk Analytics fits this criterion perfectly, signifying its measurable size, stability, and influence in the consulting services industry. The company's strengths lie in its proprietary data assets and deep industry expertise, which enable the development of predictive analytics and tailored solutions. Additionally, Verisk's scale allows it to distribute innovative solutions widely, addressing key industry challenges with modernized core offerings, cloud technology, machine learning, and AI.
The leading data analytics company’s stock touched its 52-week high of $271.80 earlier today. Its shares have gained 14.6% over the past three months. This performance compares to the iShares U.S. Industrials ETF’s (IYJ) 2.1% decline during the same period.
In the long term, VRSK's shares have increased by 13.2% on a YTD basis, overshadowing IYJ’s 6.7% returns in the same time frame. Over the past 52 weeks, VRSK has surged 21.1%, marginally outperforming the ETF’s 19.5% gains.
Since early May, VRSK has traded above both its 50-day and 200-day moving averages, suggesting a bullish price trend.
Verisk Analytics' outperformance can be attributed to the successful execution of its growth strategy, which focuses on investing in data, new technologies, and strategic client engagement across the insurance ecosystem. Moreover, the company continues to invest in high-return opportunities and return excess cash to shareholders, reinforcing confidence in its growth strategy and margin expansion commitments.
Additionally, the data analytics company’s stock popped 6.8% following its Q1 earnings release on May 1. It reported an adjusted EPS of $1.63, surpassing Wall Street expectations of $1.52. The company posted revenue of $704 million, exceeding forecasts of $699.9 million. Verisk expects full-year earnings between $6.30 and $6.60 per share, with revenue ranging from $2.8 billion to $2.9 billion.
However, one of the industry peers, CBIZ, Inc. (CBZ), has outperformed VRSK significantly, gaining 19.9% on a YTD basis and 38.4% over the past 52 weeks,
With VRSK’s outperformance compared to IYJ, analysts are moderately optimistic about the stock's prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it, and is currently trading above the mean price target of $254.
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.
