Here's Why Investors Should Retain TransUnion Stock for Now

TransUnion TRU stock has rallied 4.6% in the month-to-date period, outperforming the 1.6% growth of the industry it belongs to and the Zacks S&P 500 composite’s 0.3% rise.

TRU has an expected long-term (three to five years) EPS growth rate of 12.39%. The company’s earnings for 2025 and 2026 are anticipated to rise 8.7% and 13.15% year over year, respectively. Revenues are expected to increase 8.5% in 2025 and 7.6% in 2026.

Factors That Augur Well for TRU

TransUnion’s recognition as a Leader in the 2025 Gartner Magic Quadrant for Marketing Mix Modeling Solutions, Nov. 2025, underscores the strength of its TruAudience analytics suite and its consistent ability to execute. Earning this designation for the second consecutive year highlights the company’s continued investment in technology, innovation and client-driven solutions. By combining advanced MMM capabilities with intuitive tools, strong support programs and measurable performance outcomes, TransUnion is clearly solidifying its role as a trusted partner for brands and agencies. It continues to strengthen its position by helping clients to optimize marketing impact and accelerate data-driven decision-making.

The TransUnion-Snappt partnership strengthens the multifamily leasing process by unifying trusted screening tools with advanced income verification. Integrating Snappt’s fraud detection capabilities into TruVision enhances accuracy, efficiency and confidence for property managers. This collaboration reflects the industry’s move toward more streamlined, tech-driven verification solutions.

The company strengthens the credit ecosystem with its new, industry-first Credit Washing Solution. As credit washing grows and billions in legitimate debt vanish from reports, the tool uses advanced analytics to help lenders detect suppressed derogatory data and reveal hidden risk. This launch gives financial institutions a more proactive way to prevent losses and make better-informed credit decisions.

TransUnion’s commitment to rewarding shareholders through dividends is commendable. The company has demonstrated a strong track record, paying $82.7 million in dividends in 2024, up from $81.8 million in 2023 and $77.8 million in 2022. In the third quarter of 2025, TransUnion declared a cash dividend of 11.5 cents per share. These consistent dividend initiatives significantly boost investor confidence and reflect the company's dedication to returning value to its shareholders.

TransUnion's current ratio (a measure of liquidity) stood at 2.01 at the end of the third quarter of 2024, up from 1.66 in the previous quarter and 1.54 in the same quarter in 2023. A current ratio above one typically indicates that a company is well-positioned to meet its short-term obligations.

TRU: Key Risks to Watch

The moderation in credit card balances may reflect a more stable financial environment, but it could also indicate that consumers are relying less on credit cards for spending. If credit growth remains sluggish, TransUnion could see slower growth in its data and insights business, which depends on an expanding pool of consumer credit data.

Moreover, a rise in serious delinquencies, particularly among non-prime borrowers, could raise concerns for lenders and affect their willingness to extend credit. TransUnion must monitor these trends closely and adjust its fraud detection and credit risk solutions accordingly.

The surge in operating expenses imposes a significant challenge to TransUnion's bottom line. In the third quarter of 2025, total operating expenses increased 3.5% to $928.6 million, excluding goodwill impairment costs. This upward trend has been consistent, with operating expenses growing by 34% in 2022, 20% in 2023 and 7% in 2024. These ongoing cost increases could affect the company’s bottom line in the future.

TRU’s Zacks Rank and Stocks to Consider

TRU currently carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks from the broader Zacks Business Services sector are Charles River Associates CRAI and Veralto Corporation VLTO.

Charles River Associates currently carries a Zacks Rank of 2 (Buy). It has a long-term earnings growth expectation of 16%.

CRAI has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 15%.

Veralto Corporation carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

VLTO has a long-term earnings growth expectation of 8.5%. The company has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 6.5%.

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This article originally published on Zacks Investment Research (zacks.com).

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