Equifax Shares Hit 52-Week High - Analyst Blog
13 Março 2014 - 11:00AM
Zacks
Shares of Equifax Inc. (EFX) hit a new 52-week
high of $72.00 on Mar 12, eventually closing at $71.96. The closing
share price represents a one-year return of 27.4% and a
year-to-date return of 5.1%.
Some of the optimism surrounding the stock can be attributed to
the company’s strong correlation to consumer and financial markets
as well as its U.S. and European exposure, which is witnessing a
gradual uptick. Moreover, improving mortgage environment could be a
positive for the stock.
Moreover, management’s efforts such as strategic initiatives for
product innovation, expansion of data assets through acquisitions
and continuous share gains in North America were encouraging.
Apart from this, Equifax has been entering into partnerships to
expand its product portfolio and boost market share. We remain
encouraged by the company’s initiative to return cash to
shareholders in the form of dividends. Management increased the
quarterly cash dividend by 14%.
Additionally, Equifax delivered mixed fourth-quarter results.
While Equifax’s bottom line matched the Zacks Consensus Estimate,
the top line fell short of the same. However, the company’s
revenues increased on a year-over-year basis aided by strong growth
across most its business segments.
The company also provided revenue and earnings forecast for the
first quarter of 2014. Revenues are expected to range between $575
million and $588 million, while the Zacks Consensus Estimate stands
at $583 million. Earnings are forecasted between 84 cents and 88
cents. The Zacks Consensus Estimate is pegged at 87 cents.
Moreover, the company expects to achieve 6% to 8% core growth
during 2015. Improvement in the mortgage market and strategic
acquisitions is also expected to be the growth catalysts for the
company.
However, stiff competition from Automatic Data
Processing Inc. (ADP) and Fiserv Inc.
(FISV), and uncertainty in the mortgage sector are the near-term
concerns.
Currently, Equifax carries a Zacks Rank #3 (Hold). Investors can
consider a better-ranked stock like Micron (MU)
which sports a Zacks Rank #1 (Strong Buy).
AUTOMATIC DATA (ADP): Free Stock Analysis Report
EQUIFAX INC (EFX): Free Stock Analysis Report
FISERV INC (FISV): Free Stock Analysis Report
MICRON TECH (MU): Free Stock Analysis Report
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