Reasons Why You Should Hold Verisk Analytics Stock in Your Portfolio

Shares of Verisk Analytics VRSK have gained 3.1% over the past month, outperforming the industry’s 1.9% growth.

VRSK has a Growth Score of B, which condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth. The company’s 2025 and 2026 earnings are expected to rise 4.2% and 10.1%, respectively. Revenues are expected to grow 6.4% in 2025 and 8.1% in 2026.

Factors That Bode Well for VRSK

VRSK’s revenue growth is primarily driven by its Underwriting & Rating division, with the Claims division being the secondary one. The company’s decision to transition its business model from transactions to subscriptions aids its overall business growth. Rising demand for Software-as-a-Service (SaaS) products also plays a key role in the growth of its subscribed offerings.

Verisk Analytics, Inc. Revenue (TTM)

Verisk Analytics, Inc. revenue-ttm | Verisk Analytics, Inc. Quote

Additionally, the introduction of Claims Coverage Identifier, an insurance technology tool that provides reports with reduced data gaps, streamlined workflows, accelerated decision-making, improved accuracy of crucial auto policy and coverage details, and Provider Scoring services, an advanced lead-generation tool that leverages aggregated industry data and predictive analytics, helping insurers reduce medical fraud, waste and abuse costs, is attracting new customers and moving existing customers to subscription-based solutions.

VRSK’s growth strategy is also fueled by its strong innovation and acquisition approach, as the company rapidly invests in global companies to enhance its data and analytical capabilities. Recently, the company signed an agreement to acquire SuranceBay, a leading provider of producer licensing, onboarding, appointment and compliance solutions, which is expected expand its Life & Annuity Offerings.

In September 2025, VRSK launched a Commercial GenAI Underwriting Assistant, a cloud-based solution designed to modernize commercial property underwriting, enabling underwriters to make faster and more informed decisions. In the same month, it also announced the launch of XactA, another AI-powered tool, enhancing efficiency, consistency and speed in claims handling of Property Claims. These moves support innovative growth and technological modernization, enabling the company to gain market share.

A Risk

VRSK has accumulated significant debt due to past buyouts and efforts to expand its business, resulting in a debt-to-equity ratio of 12.49, way higher than the industry average of 7.4. Despite the debt having a positive impact on its growth, it has resulted in additional operating costs and affected its other opportunities and investments.

Zacks Rank & Stocks to Consider

VRSK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A couple of better-ranked stocks in the broader Zacks Business Services sector are AppLovin Corporation APP and Coherent Corp. COHR.

AppLovin holds a Zacks Rank #2 (Buy) at present. APP has a long-term earnings growth expectation of 20%. The company delivered a trailing four-quarter earnings surprise of 15.3% on average.

Coherent also holds a Zacks Rank of 2 at present, with a long-term earnings growth expectation of 25.6%. COHR delivered a trailing four-quarter earnings surprise of 15.2% on average.

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

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