Here's Why You Should Retain Verisk Stock in Your Portfolio Now

Verisk Analytics, Inc. VRSK stock has had an impressive run over the year. Shares of the company have risen 13.9%, outperforming the 9.1% growth of the Business - Information Services industry it belongs to and the 8.3% rise of the Zacks S&P 500 composite.

VRSK’s revenues are anticipated to increase 6.7% and 7% year over year in 2025 and 2026, respectively. Earnings are estimated to rise 6.2% in 2025 and 11% in 2026. The company has an estimated long-term (three to five years) earnings per share growth rate of 11.4%.

Factors That Augur Well for VRSK’s Success

Robust demand drove Verisk’s strong first-quarter results, with revenues reaching $753 million, up 7.0% overall and 7.9% on an organic constant-currency basis. Underwriting revenues grew 6.8% (7.2% OCC), fueled by strong performance in forms, rules, loss cost services and extreme event solutions, with additional contributions from specialty business and life solutions.

Verisk also reflected the sale of Atmospheric and Environmental Research, formerly part of its underwriting segment, in revenues from dispositions. Claims revenues increased 7.5% (9.6% OCC), driven by continued growth in property estimating and anti-fraud solutions, underscoring the company’s momentum across core insurance verticals.

Verisk’s SRCC model is a critical leap forward in modernizing political violence risk modeling. In a world where political and social volatility is rising, insurers can no longer afford to rely solely on backward-looking data. This model’s forward-looking, probabilistic approach helps bring SRCC risk into the same analytical framework as natural catastrophe and terrorism modeling, bridging a long-standing gap in exposure management.

By combining decades of catastrophe modeling experience with global political risk intelligence, Verisk has given the insurance and reinsurance markets a powerful tool to navigate a more uncertain world. It’s not just about pricing risk but about understanding it before it strikes.

Moreover, in April 2025, Verisk’s acquisition of Nasdaq’s Risk Modelling for Catastrophes (“NRMC”) expanded its catastrophe risk modeling capabilities and reinforced its commitment to open, flexible risk assessment. NRMC, built on the OASIS framework, gives Verisk clients access to more than 300 third-party and custom models, enabling more precise and diverse views of global risk. Now part of Verisk’s Extreme Event Solutions, the platform supports open data standards and streamlines risk analysis across the insurance value chain. This move strengthens Verisk’s role in advancing global resilience while allowing Nasdaq to sharpen its focus on financial technology.

The company has consistently rewarded shareholders through dividends and buybacks, paying more than $188 million in dividends annually since 2021 and significantly increasing repurchases from $475 million in 2021 to $2.8 billion in 2023. In the first quarter of 2025, VRSK returned more than $250 million to shareholders through dividends and repurchases. It also initiated a $200 million Accelerated Share Repurchase program, completed in April, buying 0.7 million shares at an average discounted price of $288.09.

As of March 31, the company had $1.4 billion remaining under its share repurchase authorization. Consistency in shareholder returns has the effect of boosting share prices as investors look for returns in unstable or uncertain markets.

VRSK: Risks on Radar

Verisk is facing mounting pressure from rising operating expenses, which are weighing on its profitability and overall outlook. The company has shown a clear trend of escalating costs, with operating expenses jumping 42% year over year in 2023 and rising another 4.8% in 2024. This trend continued into the first quarter of 2025, with expenses increasing 6.6% year over year. Sustained cost growth at this pace could erode margins and limit Verisk’s ability to invest in strategic initiatives, making expense management a key area to watch moving forward.

VRSK’s Zacks Rank & Stocks to Consider

Verisk carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks from the broader Zacks Business Services sector are  Green Dot GDOT and AppLovin APP.

Green Dot sports a Zacks Rank of #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

GDOT has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average beat is 5.6%.

AppLovin currently sports a Zacks Rank of 1.

APP has an encouraging earnings surprise history, having outpaced the Zacks Consensus estimate in each of the trailing four quarters. The average beat is 22.9%.

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

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