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Based in Atlanta, Georgia, Equifax Inc. (EFX) is a global data, analytics, and technology company valued at a market cap of $33.9 billion. 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. As one of the top three credit bureaus in the U.S., the company is renowned for its market leadership and strong brand reputation. Its diversified business model extends beyond traditional credit reporting, providing income verification and human resources services across multiple industries.
The leading credit company's shares are currently trading 17.1% below the 52-week high of $309.63, achieved on Sept. 16. Over the past three months, EFX's shares have fallen 13.7%, underperforming the S&P 500 Index’s ($SPX) 4.5% returns over the same time frame.
Over the longer term, EFX's stock is up 3.9% on a YTD basis, lagging behind SPX's 23.1% gains. Additionally, EFX's shares have surged 3% over the past 52 weeks, while SPX has returned 23.9% during the same period.
However, EFX's stock has been trading above its 50-day and 200-day moving averages since the past couple of trading sessions, indicating a bullish trend.
On Dec. 12, Equifax shares popped more than 1% after Morgan Stanley (MS) upgraded the stock to “Overweight” from “Equal-Weight” with a price target of $320.
Also, EFX has trailed its rival, Verisk Analytics, Inc. (VRSK). VRSK's shares have increased 16.1% over the past 52 weeks and nearly 15.4% on a YTD basis, compared to EFX's modest performance in both these periods.
Despite Equifax's grim price action, analysts are extremely optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 20 analysts covering it, and the mean price target of $301.21 indicates a premium of 17.3% from current price levels.
