Equifax’s first quarter results were shaped by broad-based growth across non-mortgage segments and positive momentum in new product rollouts, leading to a market reaction that reflected investor approval. Management credited the strong performance to the accelerated adoption of its cloud-native platform and the introduction of proprietary solutions, such as the “TWIN-powered” mortgage tool that combines employment, income, and credit data. CEO Mark Begor stated, “Our strong first quarter is a proof point to the power of the Equifax cloud as our team can now fully focus on growth, innovation and customers.”
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
When Wall Street turns bearish on a stock, it’s worth paying attention.
These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence.
With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players.
Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. Still, investors are uneasy as firms face challenges from AI-driven disruptors and tightening corporate budgets.
These doubts have caused the industry to lag recently as services stocks have collectively shed 6.3% over the past six months. This drop was disappointing since the S&P 500 stood firm.
Business services providers use their specialized expertise to help enterprises streamline operations and cut costs. But increasing competition from AI-driven upstarts has tempered enthusiasm,
and over the past six months, the industry has pulled back by 2.4%. This drop was disappointing since the S&P 500 held its ground.
Expensive stocks often command premium valuations because the market thinks their business models are exceptional.
However, the downside is that high expectations are already baked into their prices, leaving little room for error if they stumble even slightly.
Credit reporting giant Equifax (NYSE:EFX) announced better-than-expected revenue in Q1 CY2025, with sales up 3.8% year on year to $1.44 billion. The company expects next quarter’s revenue to be around $1.51 billion, close to analysts’ estimates. Its non-GAAP profit of $1.53 per share was 9% above analysts’ consensus estimates.
Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities.
However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.
Payroll and HR services provider Automatic Data Processing (NASDAQ:ADP) will be reporting earnings tomorrow before market hours. Here’s what you need to know.
