Reasons To Bet On CoreLogic (CLGX) Despite Coronavirus Woes

At a time when coronavirus concerns have rattled most industries, Consulting Services seems to be one of the less affected ones. This is because, amid such a volatile situation, organizations have increased their search for advice that can help them protect employees and stay close to customers and shareholders.

Further, the consulting industry is one of the early pioneers of remote work. The nature of work allows industry players to get the job done through increased use of technology.

CoreLogic, Inc. (NYSE:CLGX) is a consulting company that recently ramped up its shareholder friendly moves. It is also consistent in expanding offerings. The stock has performed well in the past year, gaining 10.4% against 2.4% decline of the industry it belongs to.

Let’s check out what makes CoreLogic an attractive pick.

Solid Rank & VGM Score

CoreLogic has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities for investors. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions

Five estimates for 2020 moved north in the past 30 days versus one downward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for fiscal 2020 inched up 2.8%.

Positive Earnings Surprise History

CoreLogic has an impressive earnings surprise history. The company outpaced the consensus mark in three of the trailing four quarters, delivering a positive earnings surprise of 8.6%, on average.

Strong Growth Prospects

The Zacks Consensus Estimate for 2020 earnings is currently pegged at $2.95, indicating year-over-year growth of 4.2%. The stock has long-term expected earnings per share (EPS) growth rate of 11%.

Growth Factors

CoreLogic continues to follow a three-pillar capital allocation model that prioritizes on apt reinvestment in platform solutions, human capital and infrastructure, returning capital to shareholders, and prudent management of debt levels.

The company expanded platforms and integrated solutions offerings, transformed its collateral valuations business model, invested in cyber and information security, and made significant progress with GCP platform migration. These are helping it to improve service quality and enhance revenues and operating efficiency. The company has shifted major part of its revenue mix toward high-margin platforms.

Further, CoreLogic allotted around one-third of its free cash flow toward repurchase of shares and reduced debt level by $110 million in 2019. It initiated dividend commencing first-quarter 2020. Such moves indicate the company’s commitment to create value for shareholders and underline confidence in its business.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are Sykes Enterprises (NASDAQ:SYKE) , Omnicom (NYSE:OMC) and Genpact (NYSE:G) , each carrying a Zacks Rank #2.

Long-term expected EPS (three to five years) growth rate for Sykes, Omnicom and Genpact is 10%, 5.6% and 14%, respectively.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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