TransUnion (TRU) Stock

TransUnion (TRU) has a strong track record of surprising with its earnings and currently has the right mix of factors that suggest it may exceed expectations in its upcoming quarterly report.

On January 16, 2025, TransUnion announced it has reached an agreement to acquire a majority stake in Trans Union de Mexico, which is the consumer credit division of Mexico's largest credit bureau, Buró de Crédito. Currently, TransUnion owns about 26% of the company and has been involved with its board for over 20 years. The deal involves purchasing an additional 68% from various selling shareholders, including major banks in Mexico, for around MXN 11.5 billion, which is about $560 million.

TransUnion has announced its intention to buy the British credit prequalification and distribution platform, Monevo. The credit reporting agency revealed this news on Wednesday, January 8, and mentioned that it already holds a 30% share in Monevo after investing in a minority stake in 2021.

The purchase addresses the increasing need for customized online credit experiences. This acquisition responds to the rising demand for tailored credit services on the internet. It aims to fulfill the growing interest in personalized credit options available online.

TRU is taking active steps to lower fraud rates, which is improving its future outlook. Nevertheless, the rising costs are still a worry.

Inflation remains a major worry for 82% of Canadians, and 44% of those asked said their household finances are not as good as they expected for 2024. This shows that many people are feeling the impact of rising prices. Overall, financial concerns are affecting a significant number of households in Canada.

TransUnion's results for the third quarter of 2024 were better than anticipated, showing a 12% rise in revenue and a 14% increase in earnings per share, thanks to strong performance in the U.S. and new product developments. The company's efforts to transform and modernize its technology are likely to lead to cost savings and improved efficiency, which should help with profitability in the long run. Although there are some risks, such as economic uncertainty, the overall market conditions and growing need for credit services suggest a positive future.

CHICAGO, Dec. 05, 2024 (GLOBE NEWSWIRE) -- During the recent Black Friday and Cyber Monday sales, a new study by TransUnion (NYSE: TRU) revealed that 4.6% of online transactions worldwide were thought to be Digital Fraud from Thanksgiving to Cyber Monday. This analysis, based on TransUnion's unique global intelligence network, showed that the suspected Digital Fraud rate decreased from 6.0% in the same timeframe last year.

TRU is experiencing more visitors, which is improving its operational efficiency. However, rising costs are still a worry.