Stock Analysis | Verisk Analytics Outlook - A Stock in a Weak Technical State

Market Snapshot

Headline Takeaway: Verisk Analytics (VRSK) appears to be in a weak technical state, with bearish signals dominating and an overall internal diagnostic score of 2.46 (0-10). Investors are advised to avoid the stock for now.

News Highlights

• MLB Partners with New Professional Softball League: Major League Baseball announced a "strategic investment" in the new AUSL, a women's professional softball league. While not directly impacting Verisk, it highlights a growing interest in sports data and analytics, which could offer long-term tailwinds in the sector.
• Verisk's Recent Earnings: Although no earnings were reported recently, the company's latest fundamental score stands at 8.21 (0-10), suggesting strong underlying business metrics. Investors should watch upcoming reports for confirmation of these fundamentals.
• Other Market News: There were several unrelated developments in professional sports and tech sectors, but few directly related to Verisk. The most relevant news for VRSK would be any industry-wide trends in risk analytics or data services.

Analyst Views & Fundamentals

Analysts have been mixed but generally neutral on Verisk Analytics, with a simple average rating score of 3.33 (0-10) and a historical performance-weighted rating of 3.12 (0-10). The consensus is considered consistent, but recent ratings have been neutral (2 out of 3) and buy (1 out of 3), indicating cautious optimism.

Despite this, the current price has risen by 1.36% in the last period, which matches the weighted expectations of analysts. The alignment suggests that the market is neither over- nor under-estimating the company's near-term prospects.

Key fundamental factors and their values:

• Price-to-Book (PB) Ratio: 10.88 (value: 10.88, score: 3.0)
• Price-to-Earnings (PE) Ratio: 205.93 (value: 205.93, score: 3.0)
• ROE (Diluted) YoY Growth Rate: 138.99% (value: 138.99%, score: 0.0)
• Total Profit / EBIT: 89.69% (value: 89.69%, score: 3.0)
• Cash-to-Market Value (Cash-MV): -1.26 (value: -1.26, score: 1.0)

These metrics suggest that while the company is growing in return on equity and profit margins, it is still trading at a high valuation and has limited cash relative to its market value.

Money-Flow Trends

Big-money investors have been cautious, with overall inflow ratio at 0.48 and a negative trend across all categories: small, medium, large, and extra-large funds. The block inflow ratio stands at 0.48, indicating that large institutional investors are also selling more than they're buying.

Despite these bearish signals, the fund-flow score is 7.56 (0-10), which is considered good. This suggests that while there is outflow, the magnitude is not extreme. Investors should monitor whether this outflow continues or stabilizes in the coming weeks.

Key Technical Signals

The technical outlook for Verisk Analytics is weak, with an overall internal diagnostic score of 2.46 (0-10). Bearish signals (4 total) far outweigh bullish ones (0), and the trend is clearly downward. Here’s a breakdown of the key technical indicators:

• Williams %R (WR) Overbought: Internal diagnostic score of 2.49 — indicates a neutral to bearish reversal signal.
• MACD Golden Cross: Internal diagnostic score of 1.1 — historically performs poorly, with an average return of -0.19% and win rate of 33.33%.
• Marubozu White: Internal diagnostic score of 1.0 — a strong bearish reversal pattern, with an average return of -0.84%.

Recent chart patterns from August 18 to 23, 2025 include a MACD Golden Cross and a WR Overbought signal. These suggest that the stock is overbought and may face downward pressure in the near term.

The key insight is that technical indicators show a weak market state with a high risk of decline, especially given the dominance of bearish signals.

Conclusion

Verisk Analytics is facing a challenging technical environment, with bearish signals overwhelming the chart and an internal diagnostic score of 2.46 (0-10). While fundamentals are strong with a score of 8.21 (0-10), the current price trend and market sentiment are not aligned for a short-term bullish trade.

Actionable Takeaway: Consider waiting for a pull-back or clearer signs of a bottoming pattern before initiating a new position. Investors should also monitor upcoming earnings and broader market conditions in the risk analytics sector for potential turning points.