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Here's Why You Should Retain Equifax (EFX) Stock for Now

Zacks.com logo Zacks.com 11/23/2022

Equifax Inc. EFX is currently benefiting from its technology transformation and strong customer base.

EFX’s revenues for 2022 and 2023 are expected to improve 3.6% from the respective year-ago reported figures.

Factors That Augur Well

Equifax’s ongoing cloud data and technology transformation aims to drive innovation and product development, and strengthen customer and partner integration. As part of the shift, EFX is migrating to a public cloud environment involved in virtual private cloud deployment techniques. EFX is focused on streamlining customers’ access to its analytical platforms.

Moreover, EFX concentrates on expanding and strengthening its customer base with efforts to deliver multi-data solutions by expanding differentiated data assets and analytics through organic growth, mergers and acquisitions, and partnerships. Equifax uses proprietary advanced analytical platforms, machine learning, artificial intelligence and advanced visualization tools.

A Risk

Equifax's current ratio at the end of the September quarter was pegged at 0.64, lower than 1.53 reported at the end of the prior-year quarter. A decreasing current ratio is not desirable as it highlights a company’s difficulty in fulfilling its short-term debt obligations.

Zacks Rank and Stocks to Consider

Equifax currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation BAH, Paychex, Inc. PAYX and Cross Country Healthcare, Inc. CCRN.

Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%.

Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.

Paychex carries a Zacks Rank of 2 at present. PAYX has a long-term earnings growth expectation of 7.5%.

Paychex delivered a trailing four-quarter earnings surprise of 8.6%, on average.

Cross Country Healthcare is currently Zacks #2Ranked. CCRN has a long-term earnings growth expectation of 6%.

CCRN delivered a trailing four-quarter earnings surprise of 10.1%, on average.

 

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