TransUnion (TRU): A Bull Case Theory

A elder enforcement successful a suit lasting successful a league country with a poster of the Pioneer Investment Management's recognition standing successful the background.

With increasing concerns of an impending U.S. recession, compiling a database of high-quality companies that person declined implicit 15% from their 30-day highs offers a timely concern approach. These companies typically person monopoly-like qualities and beardown pricing power, making them resilient successful economical downturns. One specified accidental is TransUnion (TRU), a starring recognition reporting bureau with an endeavor worth of $20.6 cardinal and a marketplace headdress of $16.1 billion. As portion of the recognition reporting triopoly alongside Experian and Equifax, TransUnion plays a captious relation successful providing user recognition reports and hazard appraisal services, which lenders usage to find creditworthiness.

Currently trading astatine 19% beneath its 30-day precocious and 34% disconnected its all-time high, TRU appears undervalued. It trades astatine a important discount to Equifax and Experian connected a P/E basis, with projected net multiples of 20x for 2025 and 16.9x for 2026. The company’s PEG ratio of ~0.9x, coupled with an expected 19% EPS maturation successful 2026, further enhances its concern appeal. A caller acquisition has besides improved its net maturation trajectory, making the banal optically much attractive. If TransUnion re-rates to a ~25x P/E, it presents a compelling accidental with an estimated 50% upside from existent levels.

TransUnion (TRU) is not connected our database of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge money portfolios held TRU astatine the extremity of the 4th fourth which was 42 successful the erstwhile quarter. While we admit the hazard and imaginable of TRU arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is much promising than TRU but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.

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Disclosure: None. This nonfiction was primitively published astatine Insider Monkey.