Atlanta-based Equifax Inc. (EFX) is a fintech-focused global data, analytics and technology company, providing information solutions and HR outsourcing services to businesses, governments and consumers. With a market cap of $29.2 billion, Equifax operates through Workforce Solutions, U.S. Information Solutions (USIS), and International segments.
Companies worth $10 billion or more are generally described as “large-cap stocks,” Equifax fits the bill perfectly. Given the company’s strong influence in the fintech space and extensive operations spanning numerous countries in the Americas, Europe, and Indo-Pacific, its valuation above this mark is unsurprising.
Despite its notable strengths, EFX stock has plunged 21.8% from its all-time high of $309.63 touched on Sept. 16, 2024. Meanwhile, EFX has dipped 4.5% over the past three months, performing slightly better than the Nasdaq Composite’s ($NASX) 8.4% decline during the same time frame.
Equifax’s performance has remained grim over the longer term as well. EFX stock has tanked 19.8% over the past six months and 6.8% over the past 52 weeks, substantially underperforming NASX’s 1.5% dip over the past six months and 9.8% gains over the past year.
To confirm the downturn EFX has traded mostly below its 50-day moving average since early October 2024 and below its 200-day moving average since mid-November with some fluctuations.
Despite outperforming Street's bottom-line expectations, Equifax's stock plummeted 8.4% after the release of its mixed Q4 results on Feb. 6. The company reported a solid 17.1% year-over-year growth in adjusted EPS to $2.12, exceeding the consensus estimates by 95 basis points. Despite the ongoing softness in US hiring and mortgage markets, the company delivered a solid 7% year-over-year growth in operating revenues to $1.4 billion. However, it missed the Street's topline expectations.
Furthermore, in fiscal 2025, Equifax expects its revenues to increase by a modest 4.7% year-over-year to $5.95 billion. And due to an expected decline of about 12% in US mortgage hard credit inquiries in the current year, Equifax expects its adjusted EPS to inch up 2.2% year-over-year to $7.45, which unsettled investor confidence.
Equifax has also lagged behind its peer TransUnion’s (TRU) 19.3% decline over the past six months and 9.2% gains over the past 52-week period.
However, analysts remain optimistic about the stock’s prospects. Among the 21 analysts covering the EFX stock, the consensus rating is a “Moderate Buy.” Its mean price target of $286.89 suggests an 18.4% upside potential from current price levels.
On the date of publication, Aditya Sarawgi 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
