Is Now An Opportune Moment To Examine TransUnion (NYSE:TRU)?

Let's talk about the popular TransUnion (NYSE:TRU). The company's shares led the NYSE gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine TransUnion’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for TransUnion

What's The Opportunity In TransUnion?

According to my valuation model, TransUnion seems to be fairly priced at around 15% below my intrinsic value, which means if you buy TransUnion today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $87.48, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since TransUnion’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from TransUnion?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. TransUnion's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in TRU’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on TRU, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into TransUnion, you'd also look into what risks it is currently facing. For example, we've found that TransUnion has 2 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

If you are no longer interested in TransUnion, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.