Verisk Analytics Inc. (VRSK)

Reasons to Hold Verisk Analytics (VRSK) in Your Portfolio

Shares of Verisk Analytics, Inc. (VRSK Quick QuoteVRSK - Free Report) have risen 5.3% year to date, outperforming the 0.5% growth of the industry it belongs to.The company has an expected long-term (three to five years) EPS growth rate of 12.56%. Its earnings for 2024 and 2025 are anticipated to rise 14.4% and 11.5%, respectively, year over year.Verisk Analytics, Inc. Price Verisk Analytics, Inc. price | Verisk Analytics, Inc. Quote Factors That Bode WellVRSK drives growth through a robust strategy focused on organic expansion, product development and strategic acquisitions, achieving a 1% CAGR in revenues over the past five years. The company continues to invest in its workforce, data sets, analytic solutions, technology and complementary businesses to stay aligned with evolving market demands.Verisk focuses on deepening solution penetration with customers, developing new proprietary databases and predictive analytics and expanding into new customer sectors.Acquisitions drive Verisk's growth strategy. The February 2023 acquisition of Mavera expanded its presence in Europe and supported global insurance growth. The acquisition of Krug in April 2023 extended its European claims and casualty services.Moreover, the March 2022 purchase of Opta boosted its presence in Canada. Meanwhile, acquiring Automated Insurance Solutions enhanced claims processing automation and geographic reach. The 2022 acquisition of Infutor Data Solutions strengthened Verisk's marketing solutions across diverse industries, including insurance.Verisk's current ratio (a measure of liquidity)at the end of the first quarter of 2024 was 1.09, higher than the preceding quarter's 1.05 and the year-ago quarter’s 0.89. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.Verisk consistently rewards its shareholders through dividends and share repurchases. The company paid $196.8 million, $195.2 million and $188.2 million as dividends and repurchased shares worth $2.8 billion, $1.7 billion and $475 million in 2023, 2022 and 2021, respectively. These actions demonstrate Verisk's commitment to shareholder value and confidence in its business.Some RisksVRSK's heavy reliance on data exposes it to operational risks, such as security breaches and contractual disputes with external suppliers. Moreover, the company's recent divestment from non-insurance segments sharpens its focus but raises concerns about overreliance on a single service offering, underscoring the importance of diversification for risk mitigation.Zacks Rank and Stocks to ConsiderVRSK currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the broader Zacks Business Services sector are Aptiv (APTV Quick QuoteAPTV - Free Report) and Booz Allen Hamilton (BAH Quick QuoteBAH - Free Report) ).Aptiv currently sports a Zacks Rank #1 (Strong Buy). APTV has a long-term earnings growth expectation of 16.40%. The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat is 12.18%. Shares of APTV have surged 17.1% in the past month.Booz Allen Hamilton carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 12.60%.The company delivered an earnings surprise of 12.66%, on average, surpassing the Zacks Consensus Estimate in three of the trailing four quarters and missing once. Shares of BAH have risen 6.5% in the past month. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>