CoreLogic Soars With the Housing Market

NEW YORK (TheStreet) -- It's the Information Age and the information to stay abreast of is multiplying exponentially. Every month the government and countless organizations come out with statistics about everything from the average price of a house to what consumers are feeling about their circumstances.

This not only leads to information overload, it presents the challenge of processing all this data and making sense of it. If we have organized, systematized and prioritized the flood of information that streams our way, we can make some very smart decisions.

That's where CoreLogic ( CLGX) steps to the plate and helps its many customers digest the data and use the information profitably.

Headquartered in Santa Ana, Calif., CoreLogic provides property, financial and consumer information, analytics and services to mortgage originators and servicers, financial institutions, government and government-sponsored enterprises, and other businesses around the United States.

The company's data and analytics services consist of information and analytics products such s property and mortgage securities information; fraud detection analytics and services; tenancy data and analytics products; under-banked credit services; and realtor solutions, such as real estate listing software systems.

This means its services are essential to the financial services world as well as property managers and real estate developers.

Its mortgage origination services includes tax services, flood data services and licenses, credit solutions, and lending solutions, as well as appraisal, credit, and other settlement services to loan originators. It also offers broker price opinions, real estate owned asset management and other default services, default technology services, loss mitigation services, claims management, property valuation and management services, and field services, such as property preservation.

That why it's no surprise that CoreLogic can offer its specific services to commercial banks, mortgage lenders and brokers, investment banks, fixed-income investors, real estate agents, property and casualty insurance companies, and title insurance companies.

We're talking about a wide array of customers with deep pockets and recurring needs. Information is only as good as it is current and fresh. So the client base of CLGX has to keep going back to the well for the latest updates and reports.

The company was formerly known as The First American Corporation and changed its name to CoreLogic in June 2010. Let's see how the stock has done since the name change.

CLGX Earnings Per Share TTM Chart CLGX Earnings Per Share TTM data by YCharts

As the fear of a double-dip recession intensified in the summer of 2011 and clients froze in fear, earnings per share plunged as well as the share price.

Then came QE2 and "Operation Twist." The Federal Reserve stepped in (just as it is about to do again in an even bigger way) and made it clear it was going to support both the housing and mortgage industries. The stock hasn't looked back since.

If you had purchased before the Fed's super-stimulus kicked in you could have bought shares for around $8.50. By Wednesday, the shares hit a new 52-week high of nearly $25. That's nearly a 200% gain in a little over a year. Not bad, not bad at all! I wonder what the next round of massive quantitative easing might do to help boost this company's earnings and share price?

As Forbes recently reported, some cities are beginning to have housing shortages as the housing market rebounds. This also signals a brisk pickup in mortgages and loan originations.

This is good for the economy, good for the consumer, and good for CoreLogic's business. No wonder last quarter's earnings growth was up more than 35% (year-over-year). Yet CLGX is trading for around 17 times forward earnings with a price-to-earnings growth ratio of only 1.18.

This means the stock still has room to rise even higher. It's trading well above its 200-day moving average, and the lower Bollinger Band indicates that with a little luck you may see a pullback to around $23, which may be an auspicious time to start accumulating some shares.

Take a long, careful look at the company's Web site to become more familiar at how CLGX makes money and how well it serves the needs of customers.

It is an impressive organization with an achievable corporate mission. That's why CoreLogic calls itself "the company financial services and real estate professionals turn to for comprehensive data, analytics and services. Powerful insight gained from this knowledge provides the perspective necessary to identify, understand and take decisive action that solves today's business challenges."

By the way, that puts the company in a league of its own, especially among publicly traded companies. Try to find another company that does all that CLGX can do for its myriad clientele. You'll find that a daunting task, and it speaks volumes about why this company has an extremely bright future.

As of the time of publication the author had no holdings in the companies mentioned in this article.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Jim Cramer and Stephanie Link actively manage a real money portfolio for his charitable trust- enjoy advance notice of every trade, full access to the portfolio, and deep coverage of the latest economic events and market movements.

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