Equifax Stock Rises on BNPL Data Integration and Industry Divergence Despite Volume Dives to Rank 480th

On August 12, 2025, Equifax (EFX) rose 0.57% despite a 51.45% drop in trading volume to $0.22 billion, ranking 480th in market activity. The stock’s recent performance reflects mixed signals from technical indicators and strategic developments.

Equifax is preparing to integrate buy-now-pay-later (BNPL) data into credit scoring models, a move aimed at modernizing credit assessment frameworks. However, major BNPL providers like Klarna and Afterpay have withheld data due to concerns over potential consumer penalties. In contrast, Affirm has already shared its data with credit bureaus, highlighting divergent industry approaches. This initiative aligns with Equifax’s broader strategy to expand its credit reporting capabilities, though challenges remain in balancing innovation with consumer protection.

Financial metrics show Equifax maintained strong operational efficiency, with a 6.5% annual revenue growth and a 18.52% operating margin. However, insider selling of 48,264 shares over three months and a return on invested capital (6.83%) below its weighted average cost of capital signal potential capital allocation inefficiencies. The company’s current ratio of 0.77 also raises liquidity concerns, though diversified revenue streams from workforce solutions and international markets support its competitive position.

Technical analysis over the past two weeks revealed conflicting signals. The stock’s 15-minute chart displayed bearish patterns such as KDJ death crosses and Bollinger Bands narrowing, while occasional bullish indicators like KDJ golden crosses emerged. These mixed signals suggest short-term volatility but lack a clear directional bias.

A backtested trading strategy of purchasing the top 500 volume stocks and holding them for one day yielded a $2,550 profit from 2022 to the present. However, the strategy faced a maximum drawdown of -15.2% on October 27, 2022, underscoring the risks of high-volume-driven approaches in volatile markets.