Why Equifax (EFX) is a Top Growth Stock for the Long-Term

Equifax (EFX) is highlighted by Zacks as a top long-term growth prospect, despite its current Zacks Rank #3 (Hold). The company demonstrates strong underlying metrics, including a 'B' Growth Style Score and VGM Score, a projected 4.4% year-over-year earnings growth for the current fiscal year, and a +4.2% average earnings surprise. Furthermore, two analysts recently revised their fiscal 2025 earnings estimates upwards to $7.61 per share, making EFX a compelling consideration for growth-oriented portfolios.

Analysis

Equifax (EFX) presents a mixed but leaning positive outlook based on the provided ratings and financial forecasts. While the stock currently holds a Zacks Rank of #3 (Hold), indicating a neutral short-term stance, its underlying growth metrics are strong. The company scores a 'B' for both its Growth and overall VGM Style Scores, signaling favorable characteristics for investors focused on financial health and future prospects. This is substantiated by a forecasted 4.4% year-over-year earnings growth for the current fiscal year and a consistent history of outperformance, reflected in an average earnings surprise of +4.2%. Looking further ahead, sentiment appears to be improving, as two analysts have revised their fiscal 2025 earnings estimates upward in the last 60 days, raising the consensus estimate to $7.61 per share. This combination of a neutral primary rank with positive underlying growth metrics and forward-looking analyst optimism positions EFX as a noteworthy candidate for portfolios with a long-term growth orientation.

Key Decisions for Investors

• Growth-oriented investors should consider EFX for their watchlist, given its 'B' rated Growth Score and a positive 4.4% YoY earnings growth forecast for the current fiscal year.
• The neutral Zacks #3 (Hold) rating suggests that while upside potential exists, immediate catalysts may be limited, warranting a hold stance for existing shareholders pending further developments.
• Investors should monitor for continued upward revisions to fiscal 2025 earnings estimates, as this is a key driver of the long-term positive thesis presented in the analysis.