Buy Equifax Ahead of Potential Earnings Beat and Solid Upside

Core Viewpoint - Equifax Inc. (EFX) is expected to report third-quarter 2024 earnings on October 16, with a positive Earnings ESP of +2.42% and a Zacks Rank 2 (Buy) [1] Financial Performance - The stock price of EFX has increased by 17.3% year-to-date, which is lower than the S&P 500's 22.8% gain [2] - The Zacks Consensus Estimate for Q3 2024 indicates revenues of $1.44 billion, reflecting a 9.5% year-over-year increase, and earnings per share (EPS) of$ 1.84, representing a 4.6% year-over-year growth [9] - EFX has shown positive earnings surprises in three out of the last four quarters, with an average beat of 3.2% [9] Revenue Segments - Analysts project that 'Revenue- U.S. Information Solutions' will reach $463.14 million, up 8.7% from the previous year [7] - 'Revenue- Workforce Solutions' is expected to be$ 625.10 million, an increase of 8.3% year-over-year [7] - 'Revenue- Total International' is anticipated to be $351.76 million, advancing 11.4% from the year-ago quarter [7] Growth Projections - EFX has experienced positive earnings estimate revisions for 2024 and 2025, with expected revenue growth of 8.9% and EPS growth of 9.7% for 2024 [10] - The long-term EPS growth rate for EFX is projected at 19.1%, significantly higher than the S&P 500's growth rate of 13.6% [11] Price Target and Market Sentiment - The average short-term price target for EFX suggests a potential increase of 10.7% from the last closing price of$ 290.13, with a maximum upside of 31% and a maximum downside of 6.5% [13]