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Chicago, IL – July 23, 2025 – Today, Zacks Equity Research discusses Iron Mountain IRM, TransUnion TRU and uCloudlink UCL.
Industry: Information Services
Link: https://www.zacks.com/commentary/2603537/3-stocks-to-watch-from-the-booming-business-information-industry
The increased adoption and success of the work-from-home trend are enabling the Zacks Business – Information Services industry to address the rising demand for services that ensure risk mitigation, cost reduction, and productivity improvement.
The heightening technology adoption is benefiting companies like Iron Mountain, TransUnion and uCloudlink, supporting them to offer digitally transformed, personalized and value-added services.
The Zacks Business – Information Services industry comprises companies that offer a range of services, including software, data, risk, research, information and analytics solutions. These companies operate in a dynamic business environment characterized by evolving customer behavior, preferences and demographics. The key focus within the industry is currently on channeling money and efforts toward more effective operational components, such as technology, digital transformation and data-driven decision-making, to identify demand sources and target end markets.
Healthy Demand Environment: The industry is mature and has witnessed a progressively growing business environment in the past few years. Revenues, income and operating cash should continue to grow during the post-pandemic economic improvement.
Demand for Customer-Centric Solutions: The pandemic stoked a many-fold increase in demand for specific solutions that ensure risk mitigation, cost reduction and productivity improvement. These, in turn, have opened up more business opportunities for industry players. These companies are now modifying their business strategies to offer more customer-centric solutions.
Increased Adoption of Technologies: Digital transformation, automation in assembling, and the use of big data in enhancing business information will likely fuel the industry’s growth in the days to come. Companies are shifting from conventional data solutions to technical and domain-specific expertise, data analytics solutions, financial consultancy and operational consultancy services.
The Business – Information Services industry is housed within the broader Zacks Business Services sector. It carries a Zacks Industry Rank #33, which places it in the top 13% of 245 Zacks industries.
The group’s Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates underperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and current valuation.
Over the past year, the Zacks Business – Information Services industry has underperformed the Zacks Business Services sector and the S&P 500 Composite.
The industry has declined 1.6% compared with the S&P 500 Composite and the broader sector’s rally of 13.1% and 9.9%, respectively, in the said time frame.
Based on the forward 12-month price-to-earnings, which is commonly used for valuing business information services stocks, the industry is currently trading at 25.28X compared with the S&P 500’s 22.69X and the sector’s 21.77X.
Over the past five years, the industry has traded as high as 30.79X and as low as 24.76X, with a median of 26.9X.
We are presenting three stocks that are well-positioned to grow in the near term.
uCloudlink: The company operates as a mobile data traffic sharing platform within the telecommunications sector.
UCL is witnessing solid performance and growing momentum in its expanding GlocalMe ecosystem. The company reported $18.7 million in quarterly revenue, in line with guidance and up 3.4% year over year. Its 1.0 international data connectivity services business showed continued growth, with full-speed 5G coverage extending to 80 countries and regions, expanding UCL’s market share and reinforcing its leadership in global connectivity.
UCL currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for 2025 bottom line has been revised upward from a loss of 6 cents to earnings of a penny per share in the past 60 days.
Iron Mountain: The company operates as a records and information management platform that generates consistent recurring revenue, primarily through monthly storage rental fees based on customer record volume.
In the first quarter of 2025, the company maintained a strong 92.9% retention rate in its records management business. Organic storage rental revenues grew 8.8% year over year, supported equally by favorable revenue management trends in its global RIM segment and new lease commencements in its data center business.
IRM currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for 2025 EPS has been revised slightly upward in the past 60 days to $5.01.
TransUnion: It is a global consumer credit reporting company that offers risk management and information solutions.
TransUnion is well-positioned to benefit from the rapid expansion of the big data and analytics market, which is being fueled by the growing reliance on data-driven decision-making across industries. By leveraging next-generation technology to enhance its analytics capabilities and expanding its already robust database, TransUnion is effectively capitalizing on this high-growth opportunity. These strategic advancements enable the company to deliver deeper business insights more efficiently, positioning it as a key player in a market with strong long-term potential.
TRU currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2025 EPS has been revised slightly upward in the past 60 days to $4.1.
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Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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