Why TransUnion (TRU) is a Top Momentum Stock for the Long-Term

TransUnion (TRU) has emerged as a compelling long-term investment, driven by a confluence of strong technical momentum, consistent earnings outperformance, and a strategic position in the rapidly expanding data analytics sector. For investors seeking exposure to a company with both short-term catalysts and durable competitive advantages, TRU offers a rare combination of momentum-driven appeal and structural growth potential.

Technical Momentum: A Buy Signal with Caution

TransUnion's technical indicators paint a picture of a stock in favorable momentum territory, though with some short-term volatility. The company holds a Zacks Momentum Style Score of A and a Value-Growth-Momentum (VGM) Score of B, underscoring its strong momentum profile. Over the past four weeks, TRU's share price has risen 5.5%, supported by positive revisions to earnings estimates in the last 60 days.

Moving averages further reinforce this bullish narrative. The 50-day and 200-day simple moving averages (83.11 and 85.25, respectively) and their exponential counterparts (84.24 and 85.91) suggest long-term buy signals according to technical analysis. However, short-term crossovers-such as the 20-50 Day and 20-200 Day MA Crossovers-produce conflicting signals, including "Sell" and "Hold" ratings according to market analysis. This duality highlights the need for caution in the near term but does not detract from the stock's overall upward trajectory. Oscillators like the RSI and MACD remain neutral, indicating a potential consolidation phase rather than a reversal as per technical indicators.

Earnings Surprises: A Track Record of Outperformance

TransUnion's financial performance in 2024 has been a key driver of its momentum. The company reported Q4 2024 earnings per share of $0.97, exceeding the $0.96 consensus estimate. Revenue surged to $1.04 billion, a 9% increase on an organic constant currency basis year-over-year, marking the fifth consecutive quarter where TRU surpassed both revenue and adjusted EBITDA guidance according to earnings data. For the full year, TransUnion achieved 9% revenue growth and a 16% rise in adjusted diluted EPS as reported.

Looking ahead, the company projects 4.5% to 6% organic constant currency revenue growth in 2025, with modest margin expansion. This optimism is underpinned by strategic initiatives such as technology modernization and the expansion of its OneTru platform, which integrates data and analytics assets into a unified environment. The platform's deployment in international markets like Canada, the UK, and India, alongside a freemium credit education offering with Credit Sesame, is expected to reinvigorate growth in the Consumer Interactive segment as per company reports.

Strategic Positioning: A Leader in a High-Growth Sector

TransUnion operates in the data analytics sector, which is poised for robust growth. The U.S. credit agency market, valued at $17.59 billion in 2025, is projected to grow at a 5.9% CAGR through 2033. TransUnion's 22.25% market share in key operational areas positions it as a dominant player within the "Big Three" credit bureaus-alongside Experian and Equifax according to industry analysis. While these rivals collectively control over 90% of the U.S. credit bureau market as market data shows, TransUnion distinguishes itself through operational efficiency and innovation.

The company's 36% Adjusted EBITDA margin in 2024 reflects its strong profitability, outpacing peers like Equifax and matching Experian's high-margin model as reported by financial analysts. TransUnion has also invested $90 million in technology modernization, including cloud-based infrastructure and the TrueIQ analytics platform, to enhance its competitive edge according to industry reports. These investments align with industry trends such as AI-driven alternative data scoring, which is reshaping credit assessment for thin-file borrowers.

Conclusion: A Momentum Stock with Structural Advantages

TransUnion's combination of technical momentum, consistent earnings outperformance, and strategic positioning in a high-growth sector makes it a standout long-term investment. While short-term volatility-evidenced by mixed moving average crossovers-requires vigilance, the company's fundamentals and innovation pipeline suggest a durable trajectory. For investors seeking a momentum stock with both quantitative appeal and qualitative strength, TRU offers a compelling case.