3 Stocks to Watch From the Booming Business Information Industry

The increased adoption and success of the work-from-home trend are enabling the Zacks Business – Information Services industry to address the rising demand for services that ensure risk mitigation, cost reduction and productivity improvement.

The heightening technology adoption is benefiting companies like Verisk Analytics, Inc. VRSK, TransUnion TRU, and FactSet Research Systems Inc. FDS, supporting them to offer digitally transformed, personalized, and value-added services.

About the Industry

The Zacks Business – Information Services industry comprises companies that offer a range of services, including software, data, risk, research, information and analytics solutions. These companies operate in a dynamic business environment characterized by evolving customer behavior, preferences and demographics. The key focus within the industry is currently on channeling money and efforts toward more effective operational components, such as technology, digital transformation and data-driven decision-making, to identify demand sources and target end markets.

3 Trends Shaping the Future of the Information Industry

Healthy Demand Environment: The industry is mature and has witnessed a progressively growing business environment in the past few years. Revenues, income, and operating cash should continue to grow during the post-pandemic economic improvement.

Demand for Customer-Centric Solutions: The pandemic stoked a many-fold increase in demand for specific solutions that ensure risk mitigation, cost reduction and productivity improvement. These, in turn, have opened up more business opportunities for industry players. These companies are now modifying their business strategies to offer more customer-centric solutions.

Increased Adoption of Technologies: Digital transformation, automation in assembling and the use of big data in enhancing business information will likely fuel the industry’s growth in the days to come. Companies are shifting from conventional data solutions to technical and domain-specific expertise, data analytics solutions, financial consultancy and operational consultancy services.

Zacks Industry Rank Indicates Encouraging Near-Term Prospects

The Business – Information Services industry is housed within the broader Zacks Business Services sector. It carries a Zacks Industry Rank of #99, placing it in the top 41% of 244 Zacks industries.

The group’s Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates underperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and current valuation.

Industry's Price Performance

Over the past year, the Zacks Business – Information Services industry has underperformed the Zacks Business Services sector and the S&P 500 Composite.

The industry has declined 28% compared with the S&P 500 Composite rally of 16.5% and the broader sector’s decline of 22%, in the said time frame.

One-Year Price Performance

Industry's Current Valuation

Based on the forward 12-month price-to-earnings (P/E), which is commonly used for valuing business information services stocks, the industry is currently trading at 17.1X compared with the S&P 500’s 19.99X and the sector’s 16.88X.

Over the past five years, the industry has traded at a high of 32.54X and a low of 17.1X, with a median of 25.87X.

Price to Forward 12 Months P/E Ratio

3 Business Information Service Stocks in Focus

We are presenting three stocks that are well-positioned to grow in the near term.

Verisk Analytics: The company offers data analytics and technology solutions to the insurance industry.

VRSK continues to strengthen the quality of its revenue stream, with subscription revenues accounting for more than 80% of total revenues in 2025, consistent with recent quarters. The company has been raising prices during contract renewals, supporting growth in annualized recurring revenues. Its transition from a transaction-based model to a subscription-driven framework enhances revenue visibility and stability. Subscription fees are typically paid in advance, either quarterly or at the start of the subscription period, supporting stronger cash flow. Additionally, markets tend to assign higher valuations to SaaS-oriented companies, creating long-term value for shareholders. New offerings such as Claims Coverage Identifier and Provider Scoring are expected to attract new clients while encouraging existing customers to adopt subscription-based solutions.

VRSK has also consistently rewarded shareholders through dividends and share repurchases, steadily increasing returns. Meanwhile, its liquidity position remains solid, with a current ratio of 1.2 at the end of the fourth quarter of 2025, above the industry level and comfortably indicating the company’s ability to meet short-term obligations.

VRSK currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for 2026 EPS has remained unchanged at $7.62 over the past 30 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price and Consensus: VRSK

TransUnion: It is a global consumer credit reporting company that offers risk management and information solutions.

TransUnion is well-positioned to benefit from the rapid expansion of the big data and analytics market, which is being fueled by the growing reliance on data-driven decision-making across industries. By leveraging next-generation technology to enhance its analytics capabilities and expanding its already robust database, the company is effectively capitalizing on this high-growth opportunity. These strategic advancements enable it to deliver deeper business insights more efficiently, positioning it as a key player in a market with strong long-term potential.

TRU currently carries a Zacks Rank #3. The Zacks Consensus Estimate for 2026 EPS has remained unchanged at $4.79 over the past 30 days.

Price and Consensus: TRU

FactSet: The company has spent more than four decades delivering comprehensive data, advanced analytics, and flexible technology solutions to global financial professionals. The company continues to benefit from a growing client base and expanding global presence. In fiscal 2025, organic revenues rose 5.4% to $2.3 billion, while the company added 779 clients, bringing the total to 20,943. Organic Annual Subscription Value (ASV) reached $2.4 billion, reflecting a 5.7% year-over-year increase.

FDS maintains a performance-driven culture focused on talent and technology, with continued investment in cloud-based platforms and digital infrastructure. Strategic acquisitions have also accelerated growth. The purchases of idaciti and Irwin enhanced data collection and investor relations workflows, while the acquisitions of LiquidityBook and LogoIntern strengthened portfolio management capabilities and improved productivity for investment professionals.

The company has consistently rewarded shareholders through dividends and share repurchases, reinforcing investor confidence. Additionally, FactSet’s liquidity remains solid, with a current ratio of 1.54 in the first-quarter fiscal 2026, comfortably above the industry average and indicating a strong ability to meet short-term obligations.

FDS currently carries a Zacks Rank #3. The Zacks Consensus Estimate for 2025 EPS has been revised slightly upward in the past 30 days.

Price and Consensus: FDS

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Verisk Analytics, Inc. (VRSK): Free Stock Analysis Report

FactSet Research Systems Inc. (FDS): Free Stock Analysis Report

TransUnion (TRU): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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