Here's Why You Should Add TransUnion (TRU) To Your Portfolio

 | May 15, 2018 11:46PM ET

TransUnion (NYSE:TRU) has been one of the star performers in the business-information services space this year. Shares of the company have rallied 25.6% on a year-to-date basis, outperforming the 10.9% gain of the TransUnion Quote

Solid Growth Prospects

The Zacks Consensus Estimate for 2018 earnings is pegged at $2.42, reflecting year-over-year growth of 29.4%. The bottom line is expected to register 12.4% growth in 2019. TransUnion has a long-term expected earnings growth rate of 10%.

This strong earnings growth prospect is justified, given that the company is well positioned to gain from the favorable socio-economic trends in emerging markets. Additionally, increased risk of identity theft due to data breaches and higher consumer awareness about the importance and usage of their credit information are propelling the demand for TransUnion’s consumer solutions.

A Brokers' Favorite

For the second quarter of 2018, seven estimates moved north over the past 60 days versus no southward revisions. Over the same period, the Zacks Consensus Estimate for the second quarter increased 5.3% to 60 cents.

For 2018, nine estimates moved north over the past 60 days versus no southward revisions. Over the same period, the Zacks Consensus Estimate for 2018 increased 5.2% to $2.42.

Given the wealth of information at the disposal of brokers, it is in the best interests of investors to be guided by broker advice and the direction of their estimate revisions. This is because the direction of estimate revisions serves as an important pointer when it comes to the price of a stock.

To Conclude

Taking into account the above-mentioned tailwinds and the favorable readings, we believe that the current price represents an attractive entry point for investors. TransUnion’s Zacks Rank #2 (Buy) also supports our view, indicating that the stock is likely to outperform the broader market over the next one to three months. You can see Zacks Investment Research

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Written By: Zacks Investment Research

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