Is Equifax Stock Outperforming the Dow?

Equifax Inc. (EFX) is a global data, analytics, and technology company headquartered in Atlanta, Georgia. It operates as one of the “Big Three” credit bureaus, providing consumer and commercial credit reporting, identity and fraud solutions, and decisioning analytics to financial institutions, employers, governments, and other enterprises worldwide. The company has a market capitalization of $20.24 billion, which makes it a “big cap” stock. 

The stock reached a 52-week low of $150.74 on June 22, but is up 14.3% from that level. Renewed confidence in Equifax’s growth initiatives has sent the stock up 5.2% over the past three months. The broader Dow Jones Industrial Average ($DOWI) is up 2.4% over the same period. Therefore, the stock has outperformed the wider index over this period. 

However, Equifax’s stock has dropped 32.8% over the past 52 weeks and 20.6% year-to-date (YTD), driven by a mix of regulatory and macro concerns. The broader Dow Jones Industrial Average is up 14.4% and 9.1% over the same period, respectively. As a result, the stock has underperformed the broader index over these periods. The stock has been trading below its 200-day and 50-day moving averages since early September.

Equifax’s stock has also come under pressure recently after Federal Housing Finance Agency (FHFA) director Bill Pulte accused major credit agencies, including Equifax, of overcharging Americans for credit reports. Pulte also stated that officials are seriously weighing a move to bi‑merge credit reporting, which would let mortgage lenders rely on just two bureaus instead of the current tri‑merge standard, putting a key recurring revenue stream for Equifax at risk. 

In the second quarter, Equifax’s revenue rose 11% year-over-year (YOY) to $1.70 billion. More importantly, the company doubled its AI-driven cost-reduction target to $150 million for 2026-2028. Wall Street analysts expect an 11.8% YOY increase in EPS for the current year to $8.55, followed by 17.9% growth to $10.08 next year. 

We compare Equifax’s performance with that of another consulting services stock, Booz Allen Hamilton Holding Corporation (BAH), which has dropped 24.4% over the past 52 weeks and 6.2% YTD. Therefore, Equifax has clearly underperformed over these periods.

Wall Street analysts are moderately bullish on Equifax’s stock. The 25 analysts covering it have a consensus rating of “Moderate Buy.” The mean price target of $212.27 indicates 23.2% upside from current levels. The Street-high price target of $245 indicates a 42.2% upside.

On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.