Last Updated: 18 Sep 2024
Executive Summary
TransUnion (TRU) is a leading provider of risk and information solutions, with a market capitalization of $19.42 billion. The company's strong financial performance, including an EBITDA of $1.21 billion and quarterly earnings growth of 56.9%, has attracted positive analyst ratings. The current stock price of $99.97 is below the analyst target price of $100.93, suggesting potential upside.
Company Overview
TransUnion offers a comprehensive suite of solutions for businesses and consumers, including credit reporting, fraud prevention, identity verification, and marketing services. The company's global presence and diverse customer base provide a solid foundation for growth.
Fundamental Analysis
Financial Strength: TransUnion's EBITDA margin of 30.4% and operating margin of 18.3% demonstrate the company's profitability.
Revenue Growth: The company's revenue has grown by 7.5% year-over-year, driven by strong demand for its services.
Valuation: The forward P/E ratio of 21.64 is in line with industry peers, indicating reasonable valuation.
Dividend: TransUnion pays a quarterly dividend of $0.42 per share, providing a yield of 0.42%.
Technical Analysis
Trend: The stock price is trending above its 50-day and 200-day moving averages, indicating a bullish trend.
Support and Resistance: The stock has support at $89.09 (50-day moving average) and resistance at $102.0 (52-week high).
Momentum: The relative strength index (RSI) is above 50, indicating positive momentum.
Short Term Outlook
In the short term, TransUnion's stock is expected to continue trading within its current range. The company's strong earnings and analyst support provide a positive outlook. However, the overall market volatility and macroeconomic factors could impact the stock's performance.
Long Term Outlook
TransUnion's long-term growth prospects are promising. The increasing demand for risk management and identity verification solutions, coupled with the company's global expansion plans, suggest continued revenue growth. The company's strong financial position and commitment to innovation position it well for long-term success.
Analyst Recommendations
Analysts have a positive outlook on TransUnion. Six analysts have a "Strong Buy" rating, ten have a "Buy" rating, and three have a "Hold" rating. The average analyst target price is $100.93, suggesting a potential upside of 0.97% from the current price.
