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About the Industry
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. Prominent players include ratings, benchmarks, analytics, data provider S&P Global and the provider of data analytics solutions, Verisk Analytics.
3 Trends Shaping the Future of the Information Industry
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.
Zacks Industry Rank Indicates Dull Near-Term Prospects
The Business – Information Services industry is housed within the broader Zacks Business Services sector. It carries a Zacks Industry Rank #163, which places it in the bottom 33% of the 243 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.
Industry's Price Performance
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 26% compared with the S&P 500 Composite and the broader sector’s growth of 19% and 2%, respectively, in the said time frame.
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Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), which is commonly used for valuing business information services stocks, the industry is currently trading at 21.6X compared with the S&P 500’s 23.65X and the sector’s 21.21X.
Over the past five years, the industry has traded as high as 32.96X and as low as 19.88X, with a median of 25.92X, as the charts below show.
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3 Business Information Service Stocks in Focus
Experian: This data and technology company delivered an impressive start to the fiscal year, reflecting strong execution of its strategic priorities and consistent momentum across its business segments.
The company achieved 12% total revenue growth at constant currency, including 8% organic revenue growth, underscoring its ability to sustain robust underlying performance even amid a dynamic macro environment. This expansion highlights Experian’s resilience, diversified growth drivers, and increasing global demand for its data, analytics and credit solutions.
With its financial outlook for the year remaining unchanged, Experian continues to demonstrate operational strength and strategic clarity.
EXPGY currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for fiscal 2026 EPS has remained unchanged at $1.75 over the past 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.
IRM delivered an exceptional second quarter, achieving record financial performance across all key metrics, surpassing expectations, and reinforcing its position as an industry leader. President and CEO William L. Meaney credited the company’s success to its strong strategic execution and customer-centric approach, supported by its synergistic business model that balances innovation with stability. Robust performance in growth businesses, coupled with sustained strength in physical records storage, continues to generate strong momentum and consistent profitability.
With confidence in its trajectory, IRM has raised its full-year guidance, reflecting optimism about sustained revenue and profit expansion over the foreseeable future.
IRM currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for 2025 EPS has been revised 1.4% upward in the past 60 days to $5.09.
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, the company 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 #3. The Zacks Consensus Estimate for 2025 EPS has been revised slightly upward in the past 60 days to $4.17.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
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