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Equifax Inc. (EFX) is a global data, analytics, and technology company with a market cap of $37.4 billion, operating primarily in the information services industry. Based in Atlanta, Georgia, the company provides data-driven solutions across sectors, including financial services, government, and healthcare.
Shares of this credit reporting company have significantly outpaced the broader market over the past 52 weeks. EFX has climbed around 54% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 27%. In 2024, EFX's shares gained 22.2%, compared to SPX's 18.1% YTD gains.
Zooming in further, EFX has also outperformed the S&P 500 Industrial Sector SPDR's (XLI) 20.9% gains over the past 52 weeks and a 13.4% increase on a YTD basis.
Equifax has outperformed due to strong growth in its Workforce Solutions and International segments, which have driven higher revenues and earnings. Moreover, the stock recovered 1.9% following its Q2 earnings release on Jul. 17 due to the company's adjusted profit of $1.82 per share, which exceeded Wall Street's expectations. Additionally, the 9% year-over-year revenue growth to $1.43 billion, beating estimates, helped alleviate concerns about the ongoing mortgage market slowdown.
For the current fiscal year, ending in December, analysts expect EFX's EPS to grow 9.1% year over year to $7.32. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on one another occasion.
Among the 19 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 14 "Strong Buy" ratings, one "Moderate Buy," and four "Holds.”
The configuration is more bullish than three months ago, with 12 analysts suggesting a “Strong Buy.”
On Aug. 23, Wells Fargo analyst Jason Haas, CFA, maintained a Buy rating on Equifax and set a price target of $340 - Street-high price target. This implies a modest potential upside of 12.5%.
As of writing, EFX is trading above the mean price target of $296.72.
On the date of publication, Sohini Mondal 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.
