Verisk Analytics (VRSK) Moving On Heavy Volume In The Pre-Market Hours

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Verisk Analytics ( VRSK) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Verisk Analytics as such a stock due to the following factors:

  • VRSK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $83.7 million.
  • VRSK traded 307,104 shares today in the pre-market hours as of 8:15 AM, representing 25.8% of its average daily volume.

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More details on VRSK:

Verisk Analytics, Inc. provides information about risk to professionals in insurance, healthcare, financial services, government, supply chain, and risk management in the United States and internationally. VRSK has a PE ratio of 30.8. Currently there are 8 analysts that rate Verisk Analytics a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Verisk Analytics has been 925,600 shares per day over the past 30 days. Verisk Analytics has a market cap of $12.1 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.72 and a short float of 1% with 1.55 days to cover. Shares are up 19.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Verisk Analytics as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 12.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • VERISK ANALYTICS INC has improved earnings per share by 22.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VERISK ANALYTICS INC increased its bottom line by earning $2.19 versus $1.97 in the prior year. This year, the market expects an improvement in earnings ($2.78 versus $2.19).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Professional Services industry and the overall market, VERISK ANALYTICS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for VERISK ANALYTICS INC is rather high; currently it is at 59.90%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.48% significantly outperformed against the industry average.

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